Is there anybody out there that has been through a voluntary repossession? I'm in the process of going through one. I understand I'll take a hit on my credit report. I tried going the right way by short selling it but it's been about 6-months and no takers. I'm prepared to take the hit. What I don't know is how long the bank will allow me to pay the difference once they have auction it off. If anybody has any experience with this, I would love to hear from you.
Voluntary repossession
- Thread starter jmercado
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shakenbake
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Typically they will work with you on monthly payments after they send it to auction and figure out how much you owe them. Sometimes they also will settle for a lesser amount than you owe.
Gary RV_Wizard
Site Team
The "how long" is going to depend totally on your bank and their willingness to work with you. There is no standard practice nor rule of thumb.
B
bucks2
Guest
I'm not an expert on this but I did buy my coach on a short sale from the previous owner. The bank in our case arranged a loan for the previous owner which was the unpaid balance after I paid our agreed upon purchase price. So, going into the actual closing everyone knew what money was going where.
If you are simply turning the unit back to the bank and they have to go thru the expense of an auction or try to sell on their own they may want to recoup those costs also from you, which may cost you more in the long run than a really screaming short sale deal to someone in a private transaction.
I would really, really, really, urge you to go talk directly to the bank and explore all the options. Find out from them if they will negotiate a price with you for a payoff. Every bank is in a different position regarding writing off losses. Some are willing to deal some are not. A face to face meeting and discussion of the options is going to give you the best outcome.
Sorry for your loss. Stand up guys willing to make it right with the bank are in short supply so hopefully your lender recognizes that and works with you.
Ken
If you are simply turning the unit back to the bank and they have to go thru the expense of an auction or try to sell on their own they may want to recoup those costs also from you, which may cost you more in the long run than a really screaming short sale deal to someone in a private transaction.
I would really, really, really, urge you to go talk directly to the bank and explore all the options. Find out from them if they will negotiate a price with you for a payoff. Every bank is in a different position regarding writing off losses. Some are willing to deal some are not. A face to face meeting and discussion of the options is going to give you the best outcome.
Sorry for your loss. Stand up guys willing to make it right with the bank are in short supply so hopefully your lender recognizes that and works with you.
Ken
nvrver
Well-known member
I have never seen an ad for your unit on this forum, maybe someone here would be interested in a good buy. Regards, Dick
Banks don't want to help. They get lots of [political remark edited out] federal money for defaulted loans. Plus the profit they will get on the coach, if there is any profit to be made. Hand the keys back, take the "loss" on your taxes, and walk away. Credit can be restored very quickly. I would not worry about a short sale, let them deal with it.
Walk away. I spent a few hundred thousand cash trying to do the right thing on a house. We made a number of offers to the bank president. He said, "Yeah, sounds great." Then they immediately started foreclosure. And they ended up getting another property worth over $300K.
The loan system is so stacked against you. Walk away, rebuild your credit, and don't feel bad for the bank. They'll be just fine.
Flame suit on, begin flaming.
Next time, when buying a luxury item, pay cash. If you can't, you can't afford it.
Walk away. I spent a few hundred thousand cash trying to do the right thing on a house. We made a number of offers to the bank president. He said, "Yeah, sounds great." Then they immediately started foreclosure. And they ended up getting another property worth over $300K.
The loan system is so stacked against you. Walk away, rebuild your credit, and don't feel bad for the bank. They'll be just fine.
Flame suit on, begin flaming.
Next time, when buying a luxury item, pay cash. If you can't, you can't afford it.
Y-Guy
Well-known member
My .02 cents is to talk with a bankruptcy attorney before this happens. Go in with a plan, don't be at the mercy of the bank.
Gary RV_Wizard
Site Team
I would talk with the bank to see what terms they offer, if any. If they aren't being reasonable, consult a bankruptcy lawyer or service quickly to see if that is an alternative. There isn't any way to find out until you discuss it with them.
As the others have said, the bank will sell the rig for whatever they can quickly get and the rest is yours. May not even be a whole lot less than you currently owe. If they write it off (forgive the debt), it becomes a taxable income to you. If you pay off the balance, it's an unsecured loan (and they may charge unsecured loan rates), so no tax deduction for mortgage interest either.
As the others have said, the bank will sell the rig for whatever they can quickly get and the rest is yours. May not even be a whole lot less than you currently owe. If they write it off (forgive the debt), it becomes a taxable income to you. If you pay off the balance, it's an unsecured loan (and they may charge unsecured loan rates), so no tax deduction for mortgage interest either.
tallyo
Well-known member
Put yourself in the banks shoes. They want their money and will attempt to get you to pay the difference promptly. Having said this you will have to get to management, as an entry level employee will simply quote chapter and verse. You need to decide how much a month or when you will have all the funds available then negotiate with the bank. Your offer has to be reasonable to them not just you. They will have to weigh collection costs against your proposed time frame and they make the decision. Obviously you can't pay the original payment amount but you have to make it cost effective for them. Good luck
path
Well-known member
Have you thought about seeing if you can get bank "re-write" the loan? Usually means longer pay back time but lesser payments.
eddieelk
Well-known member
I have a friend that had a nice 3 Yr. Old Super C Diesel. She tried to sell it without luck, so a family friend said he would take over payments. She apparently didn't transfer title, and he took the unit and didn't make a payment. Balance owed was 80K, bank auctioned it for 40K, and sent her a bill for 40K. I haven't heard the end of the story yet. Eddie Elk.
Gary RV_Wizard
Site Team
It's pretty typical to owe more than the retail value of the RV if the loan is less than 8 years old, and if the bank auctions it (likely) the selling price will be wholesale value at best. That usually means a big balance left behind.
John Hilley
Well-known member
What is the motor home, what did you pay originally and when? What is still owed on it?
To: EDDIELK you said....I have a friend that had a nice 3 Yr. Old Super C Diesel. She tried to sell it without luck, so a family friend said he would take over payments. She apparently didn't transfer title, and he took the unit and didn't make a payment. Balance owed was 80K, bank auctioned it for 40K, and sent her a bill for 40K. I haven't heard the end of the story yet.
Can you find out what happen with your friend in terms how long the bank gave to her to pay the balance. That would give a btter idea what I'm up against. Thank you buddy!
Can you find out what happen with your friend in terms how long the bank gave to her to pay the balance. That would give a btter idea what I'm up against. Thank you buddy!
I deal with this everyday. Depending on the state you are in.
Some people think that if they file BK, they think that the repo guy cannot retrieve the property and that is true to some extent. Once the BK has been discharged, then the lender can go after their property.
With most banks and credit unions, if you owe 30K on the loan and they get only 15K at the action, they will send you a 1099 for the 15K owned and you will have to report that as income on your tax return.
Some people think that if they file BK, they think that the repo guy cannot retrieve the property and that is true to some extent. Once the BK has been discharged, then the lender can go after their property.
With most banks and credit unions, if you owe 30K on the loan and they get only 15K at the action, they will send you a 1099 for the 15K owned and you will have to report that as income on your tax return.
Lou Schneider
Site Team
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BK is an abbreviation for bankruptcy.
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