Turn in motorhome back to bank

My son was in the same position with a 2006 Monaco Diplomat and turned it back to the bank. The bank sold it at auction and received an amount $33K less than the loan amount. He had to cash in most of his retirement fund to pay the difference. He had the option of claiming bankruptcy but he would have lost his house in the process so he just paid off the difference. I wish you the best of luck with your dealings.

You should talk to a BK atty to learn more about your options.

If you have other assets, like a house, cars or any other real property they will go after it. It will substantially damage your credit ratings and that will last for about 5-7 years for recovery. They might want the difference of what they can wholesale it for and what you owe in order to make them whole.

Again, I recommend you talk to a BK attorney to get the best advice.

If you are selling it because you have fallen upon hard times, then it may be your best option. As long as you won't want to borrow money for 7 years, have at it. If you bought it, and now simply don't want it, then it's a decision you will have to live with.

Unfortunately the bank can sell it for whatever they want, even if it is way below market value. Normally you will still be on the hook for the difference between what you owe and what they sell it for plus maybe some administrative fees.

I personally know a couple that walked away from their home - it was sold for peanuts (bought by the bank manager!) and they still owed the difference, with a bad credit rating for 7 years.

My opinion, sell it for what you can (fire sale price), you know you are upside down but what you may end up owing may be less than what the bank will charge you.

Tough spot, my sympathy and hope you find the least painful solution.

Chirs

BIGSKYBOB has it right. you can,t just walk away.

It's kinda sarcastic but the only ones paying full prices for motorhomes and aircraft are the insurance companies.

Your better choice is to re-finance the house and draw out the equity and pay off the coach. (if you have any equity)

Lower the asking price to a more reasionable number. Letting finance compane take it back is ALWAYS the last worst option. Besides still having to pay off the loan balance, your credit will also take a huge hit.

donn0128 wrote:
Lower the asking price to a more reasionable number. Letting finance compane take it back is ALWAYS the last worst option. Besides still having to pay off the loan balance, your credit will also take a huge hit.

if it sells for less than the note, he will be required to cash out the balance, because the bank will not sign off on the title.

Turning over to your bank is not in your best interest. Like others said, you are still on the hook for the difference.

Tom/Barb wrote:

donn0128 wrote:
Lower the asking price to a more reasionable number. Letting finance compane take it back is ALWAYS the last worst option. Besides still having to pay off the loan balance, your credit will also take a huge hit.

if it sells for less than the note, he will be required to cash out the balance, because the bank will not sign off on the title.

True, but the OP would at least have a fighting chance. Turning it back to the bank, the bank will whosale it and he will still be on the hook, just a lot deeper