Underwater loan

[starduster67]

I'm really red faced to even ask but if anyone has any ideas I'd be happy to hear. Like many seniors we bought a new Class A when retiring. Things were good back in 2001and we were full timing. Put a large down pmt although it never seemed that way. Illness struck we haven't used it in three years . Still paying big mortgage on it and have another 8 yrs to go. Hate to see it languishing in storage lot and with ins and storage fees too. I have been trying to figure a way out of this.No dealers can help we are $50 thou. Under water. I don't have that much in savings to pay it off. We've always PD our debts and repo scares the heck out of us. Anybody been in this spot or knows anyone who found a solution? Want to get a small one eventually that I could handle I admit I'm afraid of the big one. I'd appreciate any ideas and please no sarcasm I know I'm in a stupid situation of my own doing just asking for any input. Believe me 2 dealers actually told us in different wording let them take it back but I'm sure that would be a nightmare. We over paid but we signed and are responsible. Thanks hope someone will reply.

[Gale_Hawkins]

Thanks for posting because debt and retirement is a fact of life that many of us have to face.

Even if the bank would do a short sale for part of the difference you could put the insurance, storage rental and taxes if any on the principle.

You really need to pay a financial advisor a few hundred dollars to help you form a plan. This stress of not knowing your options is health damaging. Most will give you 30-60 minutes to decide if their services can be of value to you. Once we look at the full picture with fresh eyes sometimes there is a way where there is a will. Best to you in every way.

[Trackrig]

Since you are retired, you do have some time to look at the options and talk to the people.

If you're payments have been kept up, you might be able to refinance it with a lower interst rate. We financed part of ours at 3% even.

Since you don't like driving the large one but still want a MH, talk to some dealers about trading it in for a smaller one that you can enjoy and possibly with a smaller payment considering what you still owe on the larger one. They'll want to make a sale and they can be creative.

Renting it through a dealer is certainly a possibility.

You have time, go talk to people.

Bill

[PA12DRVR]

I'm sure its not what you want, but can you simply continue to make the payments? Are you not using it because of funds or because of being scared to drive it?

I'd look into refinancing, but if that can't be done, then suck it up and continue to make the payments....and I'd second what Pitch said about living frugally for a few years.

[msmith1199]

Here's another suggestion. See if anybody in your area has a motorhome rental company. Sometimes they accept privately owned motorhomes into their fleet because it keeps their capital expenses down. Make sure you check with your own insurance company before doing this to make sure it's covered. Let the private company rent your motorhome out and hope to make enough money to cover the payments. It's going to get trashed as a rental but you aren't using it anyway. And maybe you'll luck out and one of the renters will total it for you and the insurance pays off the mortgage. (Make sure you have insurance that covers the full loan on the motorhome and not just the value before doing this.)

You can even rent it out yourself by putting ads on Craigslist, but again make sure your insurance company is okay with that. You can require that renters provide a rider under their own insurance to cover any damage. I had a friend that rented out his own motorhome most of the year and used it himself part of the year and the rent money made the motorhome basically free to him. I couldn't do this myself, but in your situation it may be a good deal for you.

[pitch]

Besides the shame associated, is a bankruptcy really going to hurt you at your age? You have got a homestead exemption, so you won't be put out of your home. You will lose any other toys you may have, but I am assuming that you have already liquidated your luxuries to cover this debt.
There is no good way to come out of this. Reexamine every dollar you spend. If it means eating Ramen noodles make your choice, swallow your pride, or live like a college student for a few years.

[msmith1199]

Robyn Barnes wrote:
Your situation is not uncommon. If you are looking to refinance your rig at a lower rate and lower your payments, the Good Sam Finance Center may have options available to you depending on your individual circumstances. It doesn't hurt to give them a call and find out. You can call toll-free 1-800-444-1476 to speak with an RV loan specailist. Good luck.

I see you work for Good Sam. Are you saying they are refinancing underwater RV loans?

[Robyn_Barnes]

Your situation is not uncommon. If you are looking to refinance your rig at a lower rate and lower your payments, the Good Sam Finance Center may have options available to you depending on your individual circumstances. It doesn't hurt to give them a call and find out. You can call toll-free 1-800-444-1476 to speak with an RV loan specailist. Good luck.

[msmith1199]

I think you really only have two options here and that's keep paying or turn it in to the bank. The first thing you need to do is get in touch with somebody at the bank and explain the situation as see if they have any suggestions for you. The question you need to ask them is if you turn it in and they sell it, are they going to come after you for the difference. I'm pretty sure in most States when it comes to vehicle loans, they can come after you for the difference.

If they can come after you for the difference here's your problem: Right now you say your $50k upside down. I assume that is the difference between what you think you can sell it for and what you owe. If you do a voluntary repo and let the bank take it back they aren't going to sell it for retail. They are going to send it off to an auction company to sell it and they may end up selling it for $75k lower than the loan balance. That means instead of owing $50k you now owe $75k to the bank. Either way you can probably arrange payment options that may be cheaper than your current motorhome payments?

Then there's always bankruptcy too. That gets you out of the debt but puts a bigger black mark on your credit report than a repo would.

[MaverickBBD]

I really feel for you. What happens if you just stopped paying and said "come and get it"?