With the economy running along as it is, several people happen to be facing rv foreclosure. Since RVs are a luxury item, people are much more likely to surrender an RV before a car or their house. At least, that’s the first thing they might let go but it doesn’t have to go that far. You won’t want the negative transaction on your credit report because it may cost you thousands in the future if you want to get another loan later.
If you find that you are struggling to make the payment on your vacation, relaxation investment, there are things you can do to avoid a repossession.
Here are just a few:
1 – Sell it for whatever you can get for it and make up the difference of what you owe with cash you have saved up. This is not always an option, but sometimes it is. Often if you mention that you are facing foreclosure or repossession in the newspaper or Craigslist ad it will catch extra attention.
These days used RVs are selling fast. Last year there was so little demand for new RVs that the manufactures really slowed down production. So this year as the sales of RVs has stabilized, dealers are finding that they don’t have enough inventory and so are turning people to used RVs, which are selling very quickly because they are become less available as well.
You shouldn’t have any trouble selling your RV in forclosure, but do mention that you are looking for a quick sale, and if you will negotiate some on price, you should be able to get it sold.
2 – So what if you don’t have the cash to make up the difference if you are upside down on your loan? Go to your local credit union or bank and see if you can get a personal loan for the difference. You can also call the company you have the loan with to see if they are willing to keep you on a payment plan and still release title to the new owner once you sell it. You will have to explain to them that their position will not change in doing that since you are upside down as it is.
3 – This last idea will get you out from under the debt and it is better than a bank rv repo on your credit, but it will still ding up your credit. It is to call the lender and see if you can do a short sale. This is much like short selling a house, you first have to have a buyer on the RV before you can take that to the bank, but if you can show them that you don’t have the money to make up the difference, a lot of times they will be willing to forgive some or all of it depending on your financial standing and the person you are talking to.
Just be sure to get it in writing whatever you are agreeing on and remember that you will get a 1099 form at the end of the year as that year’s income and you will have to pay taxes on the forgiven amount as if it was income.
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