owner financing my 2016 Imagine 2600RB

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Darrin65

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Apr 19, 2016
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Can anyone help me with a question; I have a 2016 Imagine 2600RB travel trailer I purchased new and would like to owner finance it to a friend, I have it financed through a bank and need to know if it is possible to do the lease to own where he takes over the note and puts the insurance in his own name? or do I have to keep everything in my name and he pays me for the note and insurance? is this legal? need help please

I live in Texas
 
I would suggest talking to a lawyer. Rules vary from state to state. I would also suggest talking to your insurance agent.
 
I'm not an attorney, but I do know a thing or two about loaning money to friends.  In short, if you value the friendship and wish to keep it, then do not bring finances into it.

I can only assume the reason you and your friend want to enter into this owner-financing relationship, is because he or she can't obtain financing on their own.  If this is true, then odds are against you in regards to receiving each and every payment on time, or even to realize payment in full.

Proceed at your own risk.  As for me, I wouldn't even entertain such a notion.

Disclaimer:  The above is based on my own life experiences.  Your mileage may vary.

 
Thank you for the comments and warnings, I do understand the down falls, however he is more of a co-worker that I do trust. I am going through a divorce and need to unload this travel trailer he needs one for his family and farm. I just wanted to know if anyone could help before I contact a lawyer, trying to keep the expenses down
 
Darrin65 said:
Thank you for the comments and warnings, I do understand the down falls, however he is more of a co-worker that I do trust. I am going through a divorce and need to unload this travel trailer he needs one for his family and farm. I just wanted to know if anyone could help before I contact a lawyer, trying to keep the expenses down
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You may have a different outlook when your wife talks to her lawyer. Be very careful disposing of personal property before going if front of the judge. It may cost you more in the long run. I went through a NASTY divorce 40 years ago, and my ex got rid of some of MY things before the final, wasn't pretty.

I agree with the comments above. One way to make an enemy is to do financial dealing with someone. Never seen too many come out good. Even siblings, or especially siblings. 
 
Do you have a divorce attorney?  I would start by asking them if you can even sell it before a judge decides who gets what.

What will you do when the payments are late?  Or never?  Suppose the trailer is trashed.  When you say he needs it for his farm-is that for transient workers?  People who may not take care of it?  Who gets sued if there is an accident?  Who leaves the company when it becomes too tense to work together anymore?  Can you pay off the loan when/if he stops paying you?  Why ruin your credit because he apparently can't get financing?

Even if you can legally do it,it's probably going to end badly.  The relationship may be disposable but I doubt the money is.
 
Also talk with the bank that holds the loan - he may be able to assume the payments directly and you get out of the equation. But check with the divorce attorney as well to see what Texas law says about that piece of property and your right to dispose of it.

Ignoring the divorce ramifications, either you hold the title to the trailer or he does. There is no in-between. And you can't transfer the title to him without either paying off your loan or getting the bank to agree to put his name on the loan instead of yours (that's called assuming a loan). If you still hold the title, then he can pay you whatever amounts you & he agree on but YOU continue to make the loan and insurance payments.  That's risky, even if your friend has the best intentions. You probably have many years of payments ahead and a lot can go wrong several years down the road. Maybe he loses his job, or gets disabled, or has a divorce of his own. Maybe the trailer disappears and all you can do is file an insurance claim and hope the insurer agrees the trailer was stolen and not just loaned to a buddy. You have all the responsibility and no leverage at all.
 
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