Holding loan for buyer

[ginagary]

We are going to be selling our 2007 Winnebago Journey. Since it is over 10 years old, most buyers will not be able to get financing.
Has anyone had any experience in holding the loan for the buyer?
Pros/cons, suggestions.....
Thanks

[Jim]

Soooo much negativity. Most people are honest, even those who can't get a quick loan on a rapidly depreciating asset.

And situations can cause difficulties getting a loan on a used RV. I know, I couldn't get one in early '16. My credit score is 783, but at the time, no one wanted to loan $50K to a full timing RV'er. I had to pull money out of my retirement acct. Which cost me an extra $8k in punishment money come tax time.

But if I was to consider doing this, I'd certainly go through a service rather than hold the loan myself. Too much trouble when traveling.

[DutchmenSport]

Sprink-Fitter wrote:

DutchmenSport wrote:
IF THEY CAN'T GET THEIR OWN LOAN... TELL THEM TO GO SHOVE IT! THEY WILL SCREW YOU!!!!! IF THEY CAN'T GET THEIR OWN LOAN, THERE ARE REASONS WAY! WHY SHOULD YOU BE THEIR NEXT VICTIM! !!!!!!!!!!!!!!!!!!!!!!!!!!!!

YOU ARE BETTER OFF KEEPING THE RV THAN GETTING TAKEN TO THE CLEANERS.

You don’t have to yell.

Oh yes I do. I got taken for $45,000 and a year of my life fixing the damage!!!! I don't want to see anyone else EVER experience that from low-life-dead-beats at the expense of those of us who really do try and care. Never, never, never, never again! I'm now a hard A$$ for sure! Yes! It can't be emphasized enough, don't finance anyone except yourself. Even VA assumption loans are a horrible risk. You wouldn't imagine one service member screwing over another another service member, but it happens a lot. I'm not sure if VA will permit "assuming" someone else's loan any more, because of the risk of the original loan holder getting screwed over.

[Sprink-Fitter]

DutchmenSport wrote:
IF THEY CAN'T GET THEIR OWN LOAN... TELL THEM TO GO SHOVE IT! THEY WILL SCREW YOU!!!!! IF THEY CAN'T GET THEIR OWN LOAN, THERE ARE REASONS WAY! WHY SHOULD YOU BE THEIR NEXT VICTIM! !!!!!!!!!!!!!!!!!!!!!!!!!!!!

YOU ARE BETTER OFF KEEPING THE RV THAN GETTING TAKEN TO THE CLEANERS.

You don’t have to yell.

[rgatijnet1]

Many Credit Unions will handle financing on older RV's.

[TNGW1500SE]

One reason banks don't like to loan on RV's is they have wheels. If the people fail to pay, finding it again may be an issue.

[BB_TX]

There are scam artists out there. And there are good people out there who would have no intention of defaulting on a loan, but due to unforeseen problems they end up not being able to pay anyway. And even though you have legal documents showing they owe you money, good luck collecting if that person can even pay their other debts. And by then the RV may not be worth anywhere near what you initially sold it for.

Not a good idea unless for some reason you feel you want to finance the loan and you can afford the potential loss.

[wallynm]

They can get a personal loan, a HELOC, or refi their stick built house and a few other ways.

[the_bear_II]

If you have good credit and are willing to pay a higher monthly fee loans are available from many sources. It just takes some searching for the buyer to get the needed financing.

If they can't find a loan on their own then I would consider them a risk.

[stugotz61]

As most people have posted, there is significant risk in doing this on your own....However, there are several reputable companies out there that do this professionally - especially in the motorhome space. They will place he RV, do all the paper work, collect a substantial down payment, place a GPS tracker in the unit, manage all the interactions with the buyer, etc. The Buyer has to insure the unit with both you and them covered. They make money on the down payment and some on the monthly payment. Otherwise, you can sell the unit outright or sell it on the wholesale market.

[discovery4us]

Don't rule out buyer getting a loan solely based on age of the unit. Assuming the sell price is in line my credit union will give loans for MH's over 10 years old.

[Mr_Mark1]

It's a shame in today's world that people just aren't honest. I, too, would not carry a loan for a stranger. If they can't get a loan on their own, there is a reason.

There are people out there that will pay cash so I don't think you are going to be catering to a 'loan' crowd.

Good luck,
MM.

[DutchmenSport]

IF THEY CAN'T GET THEIR OWN LOAN... TELL THEM TO GO SHOVE IT! THEY WILL SCREW YOU!!!!! IF THEY CAN'T GET THEIR OWN LOAN, THERE ARE REASONS WAY! WHY SHOULD YOU BE THEIR NEXT VICTIM! !!!!!!!!!!!!!!!!!!!!!!!!!!!!

YOU ARE BETTER OFF KEEPING THE RV THAN GETTING TAKEN TO THE CLEANERS.

[old_guy]

only if you can afford to take the loss of all that money. say he wrecks the unit, he collects the money from insurance and you collect nothing. banks can take a hit, unless you are willing to lose your shirt, don't do it and if it were me I would not even think of it. if they are having trouble getting a loan it's because their credit is no good.

[gbopp]

I wouldn't do it. Even if you put a lien on the title, you could end up repossessing a trashed RV with a destroyed engine.

[ginagary]

Thanks for all the input. That is my gut feeling also!