I'm really red faced to even ask but if anyone has any ideas I'd be happy to hear. Like many seniors we bought a new Class A when retiring. Things were good back in 2001and we were full timing. Put a large down pmt although it never seemed that way. Illness struck we haven't used it in three years . Still paying big mortgage on it and have another 8 yrs to go. Hate to see it languishing in storage lot and with ins and storage fees too. I have been trying to figure a way out of this.No dealers can help we are $50 thou. Under water. I don't have that much in savings to pay it off. We've always PD our debts and repo scares the heck out of us. Anybody been in this spot or knows anyone who found a solution? Want to get a small one eventually that I could handle I admit I'm afraid of the big one. I'd appreciate any ideas and please no sarcasm I know I'm in a stupid situation of my own doing just asking for any input. Believe me 2 dealers actually told us in different wording let them take it back but I'm sure that would be a nightmare. We over paid but we signed and are responsible. Thanks hope someone will reply.

I really feel for you. What happens if you just stopped paying and said "come and get it"?

I think you really only have two options here and that's keep paying or turn it in to the bank. The first thing you need to do is get in touch with somebody at the bank and explain the situation as see if they have any suggestions for you. The question you need to ask them is if you turn it in and they sell it, are they going to come after you for the difference. I'm pretty sure in most States when it comes to vehicle loans, they can come after you for the difference.If they can come after you for the difference here's your problem: Right now you say your $50k upside down. I assume that is the difference between what you think you can sell it for and what you owe. If you do a voluntary repo and let the bank take it back they aren't going to sell it for retail. They are going to send it off to an auction company to sell it and they may end up selling it for $75k lower than the loan balance. That means instead of owing $50k you now owe $75k to the bank. Either way you can probably arrange payment options that may be cheaper than your current motorhome payments?Then there's always bankruptcy too. That gets you out of the debt but puts a bigger black mark on your credit report than a repo would.

Your situation is not uncommon. If you are looking to refinance your rig at a lower rate and lower your payments, the Good Sam Finance Center may have options available to you depending on your individual circumstances. It doesn't hurt to give them a call and find out. You can call toll-free 1-800-444-1476 to speak with an RV loan specailist. Good luck.

Robyn Barnes wrote:Your situation is not uncommon. If you are looking to refinance your rig at a lower rate and lower your payments, the Good Sam Finance Center may have options available to you depending on your individual circumstances. It doesn't hurt to give them a call and find out. You can call toll-free 1-800-444-1476 to speak with an RV loan specailist. Good luck.I see you work for Good Sam. Are you saying they are refinancing underwater RV loans?

Besides the shame associated, is a bankruptcy really going to hurt you at your age? You have got a homestead exemption, so you won't be put out of your home. You will lose any other toys you may have, but I am assuming that you have already liquidated your luxuries to cover this debt. There is no good way to come out of this. Reexamine every dollar you spend. If it means eating Ramen noodles make your choice, swallow your pride, or live like a college student for a few years.

Underwater loan | Good Sam Community

sayoung
Explorer
Sep 10, 2013
Have you looked at a "reverse mortgage" on your home.i don't know much about those but it's an option for cash.
loulou57
Explorer
Sep 10, 2013
I read everything over again, all the posts, It sunk in correctly this time.

Starduster, I really feel for you. I wish I had an answer for you. It seems that the people like you that pay their bills etc. are being honest are the ones that get stuck like this. Thanks for sharing your story. Your courage and honesty about the situation will hopefully help others and open their eyes as to what the future can bring. As I read these posts again, we skimmed over our own lives and have made a few new decisions on our future. I certainly hope things can work out and relieve you of this stress.

Lorraine
TOOBOLD
Explorer
Sep 10, 2013
I would try to get the RV into a rental fleet. As you live in Florida your camping season is extended you may be able to make up some of the difference. Make sure you have the appropriate insurance for this especially gap insurance.
msmith1199
Explorer II
Sep 10, 2013
RVUSA wrote:
lj2654 wrote:
If you do call and tell the bank or credit union to come get it...be prepared. They will do just that, and then will auction it off to the highest bidder, add fee's on what is left and set up a monthly payment for you till its paid.

It still messes up credit. I had a 1998 class "C" that I had $500 payments on...had a family situation and had to settle down from full timing rather quickly. I owed like $50K still and tried to sell myself for 8 months.

Didn't get a buyer so had bank take it...I couldn't continue monthly payment. Ended up with a $150 monthly debt still owing $10000 on it....finally refinanced my home after a couple of years and settled it at a lower amount! Good Luck!

If the bank takes it and sells it, usually for far less than it's actual worth which is usually far less than what you owe on it, they will file 10-something C form with the IRS. It will declare what the balance was left on the rv after the sale, and the IRS will happily bill you for the taxes on that amount. They consider it earned income because the bank forgave that balance.

Forgot to add: you could consider selling it as "owner financed". And sometimes the bank will allow a take over of payments depending on the credit rating of the buyer.

Really good to hear about the Good Sam option.

That's only if the bank forgives the balance. They have to in most states on home mortgages, but not on vehicle loans.
4x4ord
Explorer III
Sep 10, 2013
Maybe you have to sell the house and live in the motorhome until you can sell it and get into something suitable. There is many things that would need to be considered but if your savings are used up it sounds to me that you need to think about eating your house.
Robin1953
Explorer
Sep 10, 2013
starduster67 wrote:
I'm really red faced to even ask but if anyone has any ideas I'd be happy to hear. Like many seniors we bought a new Class A when retiring. Things were good back in 2001and we were full timing. Put a large down pmt although it never seemed that way. Illness struck we haven't used it in three years . Still paying big mortgage on it and have another 8 yrs to go. Hate to see it languishing in storage lot and with ins and storage fees too. I have been trying to figure a way out of this.No dealers can help we are $50 thou. Under water. I don't have that much in savings to pay it off. We've always PD our debts and repo scares the heck out of us. Anybody been in this spot or knows anyone who found a solution? Want to get a small one eventually that I could handle I admit I'm afraid of the big one. I'd appreciate any ideas and please no sarcasm I know I'm in a stupid situation of my own doing just asking for any input. Believe me 2 dealers actually told us in different wording let them take it back but I'm sure that would be a nightmare. We over paid but we signed and are responsible. Thanks hope someone will reply.

I have a local RV place that quit selling RVs and only does service work now. But he does take RVs in on consignment. I was there one time and heard him telling a prospective buyer of a motorhome on consignment that at the price they were selling it the owner was still going to have a $40K debt remaining. You might look into consignment sales and see if you could possibly get more for the unit. I am sure that you will not obliterate the $50K difference between market value and what you owe but you might mitigate it somewhat.
starduster67
Explorer
Sep 10, 2013
I thank you all for your responses. All were pretty much what I already knew but it never hurts to ask. I will never give up my house that's why I got out of the big RV we couldn't handle it anymore. Why would I take another loss. No I'll just keep paying because we come from a generation of folks who pay our bills. Mistakes must still be paid for in the end. I knew all along there's no honorable way out don't know why I asked. If any good comes out of my mess its maybe other RVers might think twice before getting into my situation. Bigger and newer is not always better. Do not fall for that 20 yr loan it costs so much more in the end and with the new owner excitement you wont realize it till about a year later when you see holy cow all my payments are interest and only a few measly $$$$$ went to the principal. The tax deduction isnt worth beans. Haha maybe some day I'll hit a lottery or I'll live long enough to pay it off, I hope so. I do have a sense of humor folks. Who knows :-)
TheAmRheins
Explorer
Sep 10, 2013
stardust, is there any way that you can pay extra on your monthly payment? Even a little extra will make the payoff date arrive much sooner since you are 8 years out at this point. Look for an online loan calculator to do the math.

Thanks for sharing your story - rv.net would be doing folks a favor by making this thread a "sticky" with the title "NEVER BUY A RV WITH A 20 YR LOAN"
msmith1199
Explorer II
Sep 10, 2013
Yeah, a company that makes money on the RV industry and makes 20 year loans would want to tell people never do it.
westernrvparkow
Explorer
Sep 10, 2013
If you want out, go to your local bank or credit union and get a loan to cover the difference between what you can sell it for and what you owe. Then sell the sucker. You made the decision to finance a depreciating item over 20 years. You are stuck with it. If you have the financial means to pay, the bank is not going to just take the loss, they will file liens for the deficiency balance and will collect it from either you, or your estate. Even if you have to pay back a $50,000 loan, it will cost you less than paying for the RV, the storage, the insurance and the like. It sucks, but it is not anyone's fault but your own.
I would avoid any rental situation, like I would avoid the plague. The only thing worse than paying for a rig you are not using, is paying for a rig that someone has trashed beyond repair. I doubt there is great demand for 13 year old rental rigs, so the market would only be at the bottom budget end, not the best renters.

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