Turn in motorhome back to bank
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 n...
Forum Discussion
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%.
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%.
