Turn in motorhome back to bank

[terryb149]

Has anyone got some information on what happens and how bad it is to turn your motorhome back over to the bank? I have a 2006 Allegro Bus that I have been trying to sell for a couple of months with no takers. The wife is after me to just park it at the bank and give them the keys and walk away.
I owe more than resell so I'm not in a good position.
Any thoughts sure would help me out.
Thanks all

[Effy]

I have to admit that it bugs me a bit when folks open a thread like this with little to no details and then never come back to comment on some of the solutions offered or answer clarifying questions. OP hasn't revisited this thread so most of this is all conjecture and some of the responses are judgmental. But that's what you get when you open a can of worms and walk away. What's the point of posting questions like this if you aren't going to participate?

[Bruce_Brown]

^^^ Many (most?) of these auctions are dealer only auctions. A friend of mine is an RV dealer, you'd be amazed at what some of these units sell for.

I know if we ever decide to buy another I will be talking to him on an auction unit.

[NMace]

ferndaleflyer wrote:
Mr Mace in some areas they don't get near 50 cents on a dollar. Some banks will dump them for anything they can get-----then go after the owner....

Please tell me the next time you know of such a pending sale, I will give you a 10% finders fee. If there are many as you think, selling as cheaply as you suggest, we will both get rich.

[ferndaleflyer]

Mr Mace in some areas they don't get near 50 cents on a dollar. Some banks will dump them for anything they can get-----then go after the owner....

[NMace]

Whereas I agree completely with the advice about getting legal advice and talking with the bank, you are wrong about the bank not endeavoring to realize as much as they can on a post repossession sale.

First the bank/finance company know they are unlikely to recover the unpaid difference in the note and sale. Secondly, if they fail to exercise due diligence in the sale, the borrower can sue, and most often win. And there can be criminal consequences. The foreclosed property must be properly advertised and sold via an honest arm's length transaction, usually handled by a reputable auction company. Thirdly, as to the income tax consequence of debt forgiveness, it will be treated as ordinary income, so it depends on your tax bracket, but it will not be 100% for sure.

Were banks selling high end RV's for 50 cents on the dollar, I would be at every auction bidding 51%.

[MagillaGorilla]

Lots of people are judging the OP on this thread but we don't have enough details to make a judgment. There could be many reasons that the OP needs to get out from under this loan. Yes they could be just because the OP simply no longer wants it and wants to walk away BUT it could also be due to serious financial issues or health issues forcing a major financial problem.

I know some people that "short sold" their houses just because the paid too much for them and then the market dropped. To me those people are dirt bags.

I also know people that wanted to stay in their homes but they lost their jobs and had no way to stay in them. I feel bad for them.

[toedtoes]

There are so many variables and everything folks are saying here is colored by the specifics of their situations (or their family/friends' situations).

What you need is to get legal advice for YOUR situation. The best way to do that is to consult with a lawyer. A consultation is cheap compared to what you could be out doing the wrong thing for your situation.

[1950panman]

wow I did that too...just better file bankrupt too..all..all banks will do is sell to highest bidder..and come after you for the balance..for ever..7 years ago...I will check your balance and call me..looking to up grade form a bumper pull...how much is too much you ow? good luck terry

[Effy]

Peaeye10445321 wrote:
Chapter 13. It works and you don't lose everything

All chapter 13 really is, is a court documented payment plan. It's still bankruptcy and it still wrecks your credit. Also, careful considerations have to made to ensure the court doesn't demand you liquidate some assets, like your house. You can't pick and choose what gets included in a bankruptcy nor the plan. The court looks at all your liabilities and assets. So while you can purposely walk away from the responsibility of one loan, a bankruptcy includes ALL your loans as well as considers all your assets. OP hasn't responded back yet but I didn't read any mention of financial hardship. Just that he didn't want to pay for the MH anymore. If a bankruptcy court determines you have "luxury" items and loans they can be excluded or contested. I used to manage bankruptcy operations for one on the largest N American banks and we would purposely look for luxury items to contest in a bankruptcy and advise the local attorneys which cases to pursue on. We won a lot. So the OP might try and file a bankruptcy because of his Rv, and the RV might be excluded and his house included instead. And if the math works that you have the income to support your liabilities it could be declined altogether.

A court looks at it this way, Mr. consumer put himself in dire straights by buying luxury items he couldn't afford, therefore asking to be absolved or cause hardship to the lender through no fault of their own and further asking Joe Taxpayer to pick up the tab on reduced bad loans or absolved debt, they often get declined. Banks don't just lose the money, in a bankruptcy the government funnels funds back to the lender to soften the loss. And guess where the government gets their money.

If Mr. consumer buys things that are critical like a house and loses his job, then a bankruptcy scenario may be the best option.

But you can't just willy nilly file bankruptcy anymore if you don't feel like paying for your boat, RV or second home.

[Peaeye10445321]

Chapter 13. It works and you don't lose everything

[Effy]

2gypsies wrote:
Personally, I think you need some legal or bank advice. We don't know anything about your financial background. We're not experts here - (believe it or not). 🙂

Actually I work at a bank. Been working in the banking industry for over 20 years. But seeking legal counsel is also good advice.

[2gypsies1]

Personally, I think you need some legal or bank advice. We don't know anything about your financial background. We're not experts here - (believe it or not). 🙂

[mike_brez]

Wow I must have been lucky I sold my old pace arrow in two days

[RandACampin]

Golden_HVAC wrote:
I know someone who did that with a Kia minivan, and it was only 2 years old. Her daughter had to be in the hospital a long time, and she had no other assets. The dealership sold the van for $5,000 at auction, and she still owes a tax bill for the 'loss' that the finance company suffered and wrote off to her benifit.

So while they could not go after her for the money, the IRS will.

Try to lower the price to what they are accepting for 2006 Alegro's. Check with a couple of the Texas DP dealers, and see what they are selling them for. Try selling it for a $10,000 loss. And while you will take a loss, it will not be as bad as having the bank sell it at auction to the highest bidder, who is thinking "I really have no idea what maintenance has been done to this RV, or if the refrigerator works, or the transmission is bad or what?" They plan on bidding $50,000 on a $120,000 Rig hoping that they will not have to pay more than $10,000 to get it road worthy and able to sell it at some profit.

Also consider your monthly payments. Take what you might pay over the next year, and consider 'what if I sell it next year for say $75,000.' During the next 12 months you will have to pay about $1,000 in insurance and perhaps $12,000 in payments. By selling it today for $60,000 you will actually be coming out ahead - in come cases. And next year it will be 'another' year older, 10 in fact. Some RV parks do not allow 10 year old units, but many will. Some just decide not to buy a 10 year old unit for that reason.. .

Good luck, some tough decisions, and they all don't look to rosy. . .

Fred.

How did ya'll assume the OP was from Texas? Profile says Mauldin, South Carolina.