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.

[msmith1199]

RVUSA wrote:

lj2654 wrote:
If you do call and tell the bank or credit union to come get it...be prepared. They will do just that, and then will auction it off to the highest bidder, add fee's on what is left and set up a monthly payment for you till its paid.

It still messes up credit. I had a 1998 class "C" that I had $500 payments on...had a family situation and had to settle down from full timing rather quickly. I owed like $50K still and tried to sell myself for 8 months.

Didn't get a buyer so had bank take it...I couldn't continue monthly payment. Ended up with a $150 monthly debt still owing $10000 on it....finally refinanced my home after a couple of years and settled it at a lower amount! Good Luck!

If the bank takes it and sells it, usually for far less than it's actual worth which is usually far less than what you owe on it, they will file 10-something C form with the IRS. It will declare what the balance was left on the rv after the sale, and the IRS will happily bill you for the taxes on that amount. They consider it earned income because the bank forgave that balance.

Forgot to add: you could consider selling it as "owner financed". And sometimes the bank will allow a take over of payments depending on the credit rating of the buyer.

Really good to hear about the Good Sam option.

That's only if the bank forgives the balance. They have to in most states on home mortgages, but not on vehicle loans.

[TOOBOLD]

I would try to get the RV into a rental fleet. As you live in Florida your camping season is extended you may be able to make up some of the difference. Make sure you have the appropriate insurance for this especially gap insurance.

[loulou57]

I read everything over again, all the posts, It sunk in correctly this time.

Starduster, I really feel for you. I wish I had an answer for you. It seems that the people like you that pay their bills etc. are being honest are the ones that get stuck like this. Thanks for sharing your story. Your courage and honesty about the situation will hopefully help others and open their eyes as to what the future can bring. As I read these posts again, we skimmed over our own lives and have made a few new decisions on our future. I certainly hope things can work out and relieve you of this stress.

Lorraine

[sayoung]

Have you looked at a "reverse mortgage" on your home.i don't know much about those but it's an option for cash.

[time2roll]

Trouble too is the lender can still come for the deficiency balance.
Not the same as a home foreclosure with no recourse.

[starduster67]

Sorry forgot to say all my grown kids have no interest in owning an RV and I'd never stick them with this one.

[starduster67]

Thanks for your responses. First bank is not friendly to work with. I can't even sell to someone who could take over pmts. Second our loan has been resold three times now and each place gets worse. They aren't even banks. Now its Santander. GEMB was before and a nightmare to even contact. Good Lord if I had only been able to seeing the future LOL. I can make the pmts always have and never late. Its just I want a small one I can drive but found you cannot have 2 RV loans with anyone even with outstanding credit as we have, so as long as I have this big one I can't get a small one. My hubby said all along bite the bullet and just pay for it. I am but you can't blame me for wishing it were different. I only posted because sometime someone else has an idea that's different. Also Good Sam does not refinance anything older then a 2003 I inquired. Yes this could be a lesson to others think really hard before you ever fall for that 20 yr loan on an RV its not worth it.

[RVUSA]

lj2654 wrote:
If you do call and tell the bank or credit union to come get it...be prepared. They will do just that, and then will auction it off to the highest bidder, add fee's on what is left and set up a monthly payment for you till its paid.

It still messes up credit. I had a 1998 class "C" that I had $500 payments on...had a family situation and had to settle down from full timing rather quickly. I owed like $50K still and tried to sell myself for 8 months.

Didn't get a buyer so had bank take it...I couldn't continue monthly payment. Ended up with a $150 monthly debt still owing $10000 on it....finally refinanced my home after a couple of years and settled it at a lower amount! Good Luck!

If the bank takes it and sells it, usually for far less than it's actual worth which is usually far less than what you owe on it, they will file 10-something C form with the IRS. It will declare what the balance was left on the rv after the sale, and the IRS will happily bill you for the taxes on that amount. They consider it earned income because the bank forgave that balance.

Forgot to add: you could consider selling it as "owner financed". And sometimes the bank will allow a take over of payments depending on the credit rating of the buyer.

Really good to hear about the Good Sam option.

[othertonka]

TucsonJim wrote:

loulou57 wrote:
Do you have any children that would be able to buy it from you for what is owing? Or could they take over the payments, keeping it in your name? Lorraine

Lorrine - She owe's $50,000 more than what it's worth. Having her children take over the payments or buy it from her would be saddling them with a motor home that costs $50K more than it's worth.

Plus it has been sitting for 3 years so it will need tires and batteries at the minimum along with who know what needs to be fixed before anyone can even use it. Tough deal, wish you good luck

[TucsonJim]

loulou57 wrote:
Do you have any children that would be able to buy it from you for what is owing? Or could they take over the payments, keeping it in your name? Lorraine

Lorrine - She owe's $50,000 more than what it's worth. Having her children take over the payments or buy it from her would be saddling them with a motor home that costs $50K more than it's worth.

[loulou57]

All I can say is ...ask for help now before nothing can be done. You have nothing to be ashamed of but talk to financial agents soon.

Do you have any children that would be able to buy it from you for what is owing? Or could they take over the payments, keeping it in your name? That way it will not feel you are giving it away to strangers.

My thoughts are with you.

Lorraine

[lj2654]

If you do call and tell the bank or credit union to come get it...be prepared. They will do just that, and then will auction it off to the highest bidder, add fee's on what is left and set up a monthly payment for you till its paid.

It still messes up credit. I had a 1998 class "C" that I had $500 payments on...had a family situation and had to settle down from full timing rather quickly. I owed like $50K still and tried to sell myself for 8 months.

Didn't get a buyer so had bank take it...I couldn't continue monthly payment. Ended up with a $150 monthly debt still owing $10000 on it....finally refinanced my home after a couple of years and settled it at a lower amount! Good Luck!

[TucsonJim]

Auto dealers and RV dealers make loans on RVs all the time where they take in a vehicle that is "under water". If you are serious about purchasing another MH that is smaller, you might very well be able to trade in the old one, buy a new one and walk away with a lower overall monthly payment, and a MH that you can afford.

If it were me, I'd certainly look into this option.

[time2roll]

This might be one case where I would suggest renting it out. Might be best to go through an agent. Worst case let the lender come pick it up. But you will then be paying cash or VERY high rates to finance anything in the future.

[Robyn_Barnes]

msmith1199 wrote:

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?

Everyone's situation is unique but the Good Sam Finance Center does have some options available to RV owners that are upside down in their RV loans. Of course there are many factors that go into the approval process so calling them directly to review the specifics is the best way to find out if they can assist.