What To Do- Assisted Care Facility and Motor Home.

AprilWhine wrote:

bigdogger wrote:
The ramifications are going to be to him and to his estate, assuming his wife is not living. If he has no estate, having a voluntary repossession (what would happen should you decide to turn it over to the bank) will result in a judgment that will be dismissed by his death. If he has an estate, use some of the assets from that estate to pay the deficiency balance once you sell the rig. Any hit to his credit rating will be moot, since once he moves into a care facility, he will have no need for credit.

This is very good advice. I assume since he has been a full timer for 16 years the house and any cash is long gone.

Actually, I was thinking the opposite. He had the ability to finance what must be a relatively expensive RV, if he is $12K upside down. Contrary to popular belief, most banks are not staffed by complete idiots. They would have had some basis to extend the loan. Often times these questions come because the heirs are trying to preserve as much of the estate as possible.
The test I always use is what decision would you make if the lender was not the bank, but instead a very good friend. It is one thing to tell that friend, "We are so sorry, but dad can no longer pay the loan, he has to have 24 hour care and the cost of that care leaves no money to pay you back." It is another thing to tell them, "hey, dad can't use the RV anymore, so tough luck, we aren't going to cash in any of his assets to pay you, we want the money when he dies. Too bad you made a bad decision on dad's health when you loan him the money."
Edit: OP updated information while I was writing this response. There is one other thing to consider. If there is life insurance involved, it may or may not be attachable by a judgment. If it is attachable, it would be advisable to pay the deficiency balance by hook or crook, since the judgment would have fees and interest attached that will snowball very quickly. Also, go and get a copy of the loan and see if your father signed up for any accident and health insurance coverage. Dealers often pressure borrowers to buy it because it is a big money maker for them due to the law of large numbers, but you are a number of one and such coverage would be an absolute windfall if he bought it.

Thanks bigdogger - I should have included that information. No wife (died last year). No house, sold it a long time ago, Savings is used up. He is living on his state retiremnet after 35 years of teaching.

This is really a sad thing to deal with, just trying to figure out the right thing to do..

bigdogger wrote:
The ramifications are going to be to him and to his estate, assuming his wife is not living. If he has no estate, having a voluntary repossession (what would happen should you decide to turn it over to the bank) will result in a judgment that will be dismissed by his death. If he has an estate, use some of the assets from that estate to pay the deficiency balance once you sell the rig. Any hit to his credit rating will be moot, since once he moves into a care facility, he will have no need for credit.

This is very good advice. I assume since he has been a full timer for 16 years the house and any cash is long gone.

The ramifications are going to be to him and to his estate, assuming his wife is not living. If he has no estate, having a voluntary repossession (what would happen should you decide to turn it over to the bank) will result in a judgment that will be dismissed by his death. If he has an estate, use some of the assets from that estate to pay the deficiency balance once you sell the rig. Any hit to his credit rating will be moot, since once he moves into a care facility, he will have no need for credit.

You can always just sell it and pay the lender off out of your pocket.

Hi,

We are not able to give you reliable advice. It would depend partly on where you live.

It's certainly OK to get opinions on these boards and they may help you to better understand the options. But then you need professional advice.

Apparently he has limited assets. It might be feasible to give the keys to the bank and walk away, but I'd certainly get professional advice. There could be a number of ramifications including any assets when he dies. Possibly they could attach his income and force him into a different facility.

Find out his options and then let the bank know. They may be flexible and not want to own the MH. But they may drag their feet. He may also be responsible for continuing expenses until it is sold. ie In Arizona banks do not change the title on a foreclosed home. Therefore all maintenance, taxes, etc remain the responsibility of the home owner. Some of these will never be paid by the bank.

You might want to contact a lawyer to get solid information on this, There a re a few options.

Have you heard of Escapees RV club? They have a care facility in Livingston TX (called CARE) where you can stay in your RV and get nursing care. I do not know if they can take care of your father's particular needs, but it might be worth a try.