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.

[starduster67]

Your right people are only trying to help. Its just a sensitive topic for me. All is well.

[time2roll]

starduster67 wrote:
Excuse me folks I wasn't crying on your shoulders. Many of you sound like you have fat wallets, not all of us. If I could have made double payments in 2001 don't you think I would have? I was just trying to pick brains for ideas. I'm capable of paying I'm not going into repo nor can I refinance its too old.I also wouldn't rent or consign. Are many of you so smart that you never made a financial mistake? I thank you who have been kind, those that have a holier then thou attitude .....I'll say in 2001 we could afford what we bought things were good. My husband's serious illnesses have taken us out of full timing. It wasn't a choice believe me. Remember it can happen to anyone.

The thread is bound to wander and after the first couple pages the comments are not directed toward yourself so try not to take it personally.

[starduster67]

Yes I'm sure we aren't alone. It took me a long time thinking about this to even venture to discus it. None like to find themselves in this position. I'm glad I did though because a few folks had some good ideas and shared. I have days when I get frustrated and say the heck with it let them come and get it. Then sanity prevails and I know I can't do that. So I'm gonna take a few of the suggestions and see where it takes us. Extra on principal when I can and see what happens. I appreciate the encouraging words. Thanks

[2324delk]

Sorry for your bad luck.

But you did not chose it.

What happens if your husbands illness gets worse, and it costs you more to maintain his health. Can you still make all your payments.

Bankruptcy Laws are there for a reason.

A good lawyer may work with the Bank and get you a deal to let you sell it, and make payments on the balance, maybe even a reduced balance.

Talk to a professional

Good Luck

[Gale_Hawkins]

There are more than one reading the site in the same boat or worse you can bet. Years can move faster than we thought sometimes.

[starduster67]

Thank you Lorraine

[loulou57]

starduster67 wrote:
Excuse me folks I wasn't crying on your shoulders. Many of you sound like you have fat wallets, not all of us. If I could have made double payments in 2001 don't you think I would have? I was just trying to pick brains for ideas. I'm capable of paying I'm not going into repo nor can I refinance its too old.I also wouldn't rent or consign. Are many of you so smart that you never made a financial mistake? I thank you who have been kind, those that have a holier then thou attitude .....I'll say in 2001 we could afford what we bought things were good. My husband's serious illnesses have taken us out of full timing. It wasn't a choice believe me. Remember it can happen to anyone.

It can happen, to anyone. Nobody should judge you. We all have made a bad investment, bought something on impulse and wondered later, why we did it. Some of us, hubby and myself like you, have gone through illness, toughed it out and added extra stress figuring out how we are going to manage. Thinking of ways to reduce headaches so we can still enjoy life. Things have a way of working out, like it will for you.

Take care, Lorraine

[starduster67]

Excuse me folks I wasn't crying on your shoulders. Many of you sound like you have fat wallets, not all of us. If I could have made double payments in 2001 don't you think I would have? I was just trying to pick brains for ideas. I'm capable of paying I'm not going into repo nor can I refinance its too old.I also wouldn't rent or consign. Are many of you so smart that you never made a financial mistake? I thank you who have been kind, those that have a holier then thou attitude .....I'll say in 2001 we could afford what we bought things were good. My husband's serious illnesses have taken us out of full timing. It wasn't a choice believe me. Remember it can happen to anyone.

[time2roll]

TheAmRheins wrote:
Thanks for sharing your story - rv.net would be doing folks a favor by making this thread a "sticky" with the title "NEVER BUY A RV WITH A 20 YR LOAN"

20yrs is fine as long as when times are good a person makes double payments. If you cannot make double payments maybe the RV was a bit rich. Only if times turn for the worse should just the minimum get paid. And usually that is not during the first year.

If the OP had made double payments the first five years the debt would be a much lower burden today.

[westernrvparkow]

If you want out, go to your local bank or credit union and get a loan to cover the difference between what you can sell it for and what you owe. Then sell the sucker. You made the decision to finance a depreciating item over 20 years. You are stuck with it. If you have the financial means to pay, the bank is not going to just take the loss, they will file liens for the deficiency balance and will collect it from either you, or your estate. Even if you have to pay back a $50,000 loan, it will cost you less than paying for the RV, the storage, the insurance and the like. It sucks, but it is not anyone's fault but your own.
I would avoid any rental situation, like I would avoid the plague. The only thing worse than paying for a rig you are not using, is paying for a rig that someone has trashed beyond repair. I doubt there is great demand for 13 year old rental rigs, so the market would only be at the bottom budget end, not the best renters.

[msmith1199]

Yeah, a company that makes money on the RV industry and makes 20 year loans would want to tell people never do it.

[TheAmRheins]

stardust, is there any way that you can pay extra on your monthly payment? Even a little extra will make the payoff date arrive much sooner since you are 8 years out at this point. Look for an online loan calculator to do the math.

Thanks for sharing your story - rv.net would be doing folks a favor by making this thread a "sticky" with the title "NEVER BUY A RV WITH A 20 YR LOAN"

[starduster67]

I thank you all for your responses. All were pretty much what I already knew but it never hurts to ask. I will never give up my house that's why I got out of the big RV we couldn't handle it anymore. Why would I take another loss. No I'll just keep paying because we come from a generation of folks who pay our bills. Mistakes must still be paid for in the end. I knew all along there's no honorable way out don't know why I asked. If any good comes out of my mess its maybe other RVers might think twice before getting into my situation. Bigger and newer is not always better. Do not fall for that 20 yr loan it costs so much more in the end and with the new owner excitement you wont realize it till about a year later when you see holy cow all my payments are interest and only a few measly $$$$$ went to the principal. The tax deduction isnt worth beans. Haha maybe some day I'll hit a lottery or I'll live long enough to pay it off, I hope so. I do have a sense of humor folks. Who knows 🙂

[Robin1953]

starduster67 wrote:
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.

I have a local RV place that quit selling RVs and only does service work now. But he does take RVs in on consignment. I was there one time and heard him telling a prospective buyer of a motorhome on consignment that at the price they were selling it the owner was still going to have a $40K debt remaining. You might look into consignment sales and see if you could possibly get more for the unit. I am sure that you will not obliterate the $50K difference between market value and what you owe but you might mitigate it somewhat.

[4x4ord]

Maybe you have to sell the house and live in the motorhome until you can sell it and get into something suitable. There is many things that would need to be considered but if your savings are used up it sounds to me that you need to think about eating your house.