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Author Topic: I can't afford my RV payment , now what?  (Read 9747 times)

Brian w. Hall

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I can't afford my RV payment , now what?
« on: January 14, 2011, 12:09:54 AM »
I have a lot going on in my life right now. IRS audit , foreclosure and work is slow. What will happen to me if I can't afford my RV payments? I have a 15 year loan with bank of america. Has anyone gone through this? Thanks.
Brian W. Hall
96 Monaco Dynasty
Full timer

susann9090

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Re: I can't afford my RV payment , now what?
« Reply #1 on: January 14, 2011, 06:59:30 AM »
Brian,

I went thru that type of stuff 5 years ago.

SELL IT!  SELL EVERYTHING INCLUDING THE DOG.

Dude, you can always buy another RV later.

I sold everything, paid off my debt and rebuilt my financial life.  I sleep so well now, enjoy my family and love my life.  I just bought a RV.

www.daveramsey.com

Lifes to short to stress.

Avoid repo on the rv at all costs.  Once it gets repo'd you lose all control of the sale price.  And the bank will sell the rv at absolute auction, and sue you for the difference.  By you selling the rv, you control the sale price.

I had a sweet Baja Outlaw 40' Cig Boat, I sold it on ebay, paid the loan off and washed my hands of it.  It totally rocked my world getting rid of that payment.

Good Luck to you brother - I know the stress level.
just sold my 1999 Winnebago Chieftain, Freightliner Chaisis, Cummins 275hp
sold the toad!

currently i am rv less - i am however borrowing my father in laws camper!

susann9090

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Re: I can't afford my RV payment , now what?
« Reply #2 on: January 14, 2011, 07:03:47 AM »
BTW, I was about your age when I had my "reality check". 

Get current on your house asap, let "bank of america" call and whine all they want regarding the rv payment.  Stop paying everything but food, lights, heat and get current on your house.
just sold my 1999 Winnebago Chieftain, Freightliner Chaisis, Cummins 275hp
sold the toad!

currently i am rv less - i am however borrowing my father in laws camper!

geodrake

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Re: I can't afford my RV payment , now what?
« Reply #3 on: January 14, 2011, 07:58:54 AM »
IMO Susann makes a lot of sense.  One way or another you, or the bank, are going to unload debt. If the bank does it it will be painful and will ruin your ability to access credit for a long time.  If you do it yourself it is still going to be painful, but you will be able to retain a good credit standing.  Not only is this important as you rebuild, but your credit rating has a direct impact on things like insurance rates, etc. 

I suggest that you inform your creditors immediately of what you are doing.  Generally, they will go along with you.
George Drake

Gary RV Roamer

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Re: I can't afford my RV payment , now what?
« Reply #4 on: January 14, 2011, 08:25:55 AM »
Your creditors may be able to restructure yur debt, i.e. reduce payments, but it sounds like it may have gone beyond that stage already. Sell the RV if you can, but you may be upside down (owe more than it is worth), which will require that BOA agree to a short sale or other solution for the difference. Talk with them about your situation and options.  They don't want a repo either, but sometimes that's the only way out.

If you can figure out some way to get current on the house, that is more important than salvaging the RV credit line, but if the house is already in foreclosure it's probably too late for that too.
Gary
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rats1955

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Re: I can't afford my RV payment , now what?
« Reply #5 on: January 14, 2011, 08:26:24 AM »
Susann9090 is correct.  Get busy and sell everything.  Don't hesitate, waiting will only make it worse.  You can always buy back when you get back on your feet.  You need to address your foreclosure.  If you can sell the house, do so and work with the bank for a short sale. 

If you are actively working to sell your stuff, your creditors will work with you.  Tell them what you are going to do and when.  Follow through with your plan.  Be 100% honest with all your creditors.  Most will bend over backward if you are honestly trying to liquidate your stuff.
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mdbass

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Re: I can't afford my RV payment , now what?
« Reply #6 on: January 14, 2011, 09:02:20 AM »
Ditto on the communication thing-I do not know a bank that want a used RV! (much less the cars and cycles they end up with) I would add never, never knowingly lie when a bank or finance company agrees to work with you. You'll find they will be quick to react. After my heart attacks and loss of work; I can relate. Good Luck!

34footer

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Re: I can't afford my RV payment , now what?
« Reply #7 on: January 14, 2011, 09:06:01 AM »
I have a lot going on in my life right now. IRS audit , foreclosure and work is slow. What will happen to me if I can't afford my RV payments? I have a 15 year loan with Bank of America. Has anyone gone through this? Thanks.

WOW! Good you are young you will bounce back.
IRS....fix that ASAP, you don't want to have to share a cell with Wesley Snipes.
Home...maybe a loan modification?
RV...if it doesn't have a slide that will be a slow sell or you will have to dump it cheap. It looked like you were a full-timer, where will you live?

J
1988 Pace Arrow, 34 feet, Chevy 454
                       So Cal

STRETCH

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Re: I can't afford my RV payment , now what?
« Reply #8 on: January 14, 2011, 09:26:30 AM »
Where is the rv located and what is pay-off?

FrankNSharon

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Re: I can't afford my RV payment , now what?
« Reply #9 on: January 14, 2011, 09:59:01 AM »
Quote
IRS....fix that ASAP, you don't want to have to share a cell with Wesley Snipes.

This is stress you don't need, I have been around that tree with the IRS and you do NOT have to worry about jail time, as long as you work with them and don't break any laws.

It is NOT illegal to be broke or in debt.

In fact I found the IRS to be the easiest of my creditors to work with and banks the worst. The IRS will go to almost any length to work out something you can afford. Just call them and talk.

Frank

Brian w. Hall

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Re: I can't afford my RV payment , now what?
« Reply #10 on: January 14, 2011, 11:15:46 AM »
Thanks for the words of wisdom and encouragement. I am in fact upside down on the RV by $20,000 or so if I had to guess. No slide-outs and my pay off is around $50,000 for my 96 Monaco Dynasty with 82,000 miles. In all honesty I can afford my RV payment but with everything else thats going on its one more thing that would be nice to shed if I can especially since it will never be more valuable than the loan. I have been semi full time in that my job travels me sometimes up to 9 months out of the year so I get hotel rooms provided or corporate apartments. I do own 2 condos which I rent out most of the time so if I lose the RV I could free up the condo that I'm not foreclosing on and live in it. The condo I'm foreclosing was hit hard by the housing crash in GA and I ended up being $75,000 upside down. I don't want to hold on to the headache for another 10 years before I can barely break even so I strategically defaulted. Even though it is in 'active foreclosure' I am exploring other options with lawyers to see what my best option will be. I don't apply for a short sale because I make too much money and can't prove a hardship in financials.  I am young and single and would rather make these adjustments now rather than when I meet my future wife.

the IRS audited me and wants $26,000. I have a good accountant and we are appealing the audit so hopefully it will go away or I will be left with a much lower fee at the least.

Funny thing is I feel like I have made good money decisions but maybe not? I've never missed a payment on anything until I strategically defaulted on the upside down condo. I've always saved my money and have invested regularly in my IRA for 10 years now.
Brian W. Hall
96 Monaco Dynasty
Full timer

Theberrys

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Re: I can't afford my RV payment , now what?
« Reply #11 on: January 14, 2011, 01:36:24 PM »
GET OUT OF DEBT!  Anyway you can and start over. When you start over don't go back into debt. It may look like your loosing money in the short term, but that's better than loosing everything.

Debt put a stress on your family life that you may not be able to overcome. Think of living alone in the RV and decide if that is the life you really want.
Dick

1999 National RV Tradewinds 36.5 ft. 300hp Cat, Freightliner Custom Chassis

Derby6

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Re: I can't afford my RV payment , now what?
« Reply #12 on: January 14, 2011, 02:28:46 PM »
GET OUT OF DEBT!  Anyway you can and start over. When you start over don't go back into debt.
Agreed..  2 Condo's and an RV that size at 29 and single. :o  You oviously went deep in debt, taking some risks that potentially could have put you on easy street with some good money, assests, and income down the road.  Unfortunately there was a BIG risk involved.  Don't repeat that mistake.
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John From Detroit

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Re: I can't afford my RV payment , now what?
« Reply #13 on: January 14, 2011, 03:57:56 PM »
Getting out of debt is not always as easy as it sounds... However there are folks who may be able to assist you there.....   I have some knowledge but alas it is not enough for my personal situtation... Might help others... (I however am still keeping my nose above water debt wise)
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scottydl

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Re: I can't afford my RV payment , now what?
« Reply #14 on: January 14, 2011, 04:51:11 PM »
Funny thing is I feel like I have made good money decisions but maybe not?

I think your current circumstances have given you the answer to that.  Making payments on time only preserves your credit, it doesn't keep your stuff (real estate, RV, car, etc.) from tanking in value during a recession like this one.  I don't want to sound like a broken record, but relying on debt for investments is never a good money decision.  It can turn upside down all too easily as you are learning.  Most of us have it and use it (debt), but I am trying like heck to get out and live a cash-only lifestyle well before I reach retirement age.  I'm only a few years older than you.  I have a nice house that's halfway paid off and a good chunk left on student loans, but then we're FREE!  When you owe people/banks, you are enslaved to them rather than working for yourself.  After paying off my wife's car loan right after we got married (1999), we've always saved up and paid cash for good used vehicles, something I recommend to everyone who will listen.

I'll throw in another recommendation for Dave Ramsey.  The guy has decades of financial experience (both personal and professional) and is hilarious to listen to.  Check out his books and radio show if it's broadcast wherever you are, or you can download the show via his website and/or daily podcasts which are free.
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skyking4ar2

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Re: I can't afford my RV payment , now what?
« Reply #15 on: January 14, 2011, 08:22:48 PM »
We did Dave Ramsey, although not from the low spot you have, but it's a mindset change. It's not rocket science, and probably stuff you already know. If you can buy into it, I promise, you will kick yourself in the butt for not doing it sooner.

You are at a much tender age than us, and we did it in six months, and that's how we get to be here now.

But ya gotta REALLY want to be shed of the debt...that's the trick!

Good luck!
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bucks2

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Re: I can't afford my RV payment , now what?
« Reply #16 on: January 14, 2011, 08:37:05 PM »
Homes are bought with credit as soon as you can afford to make a decent down payment. I was 19 when I bought mine.  Toys are bought with cash saved and held for the day when you have enough. I paid cash for my motorhome, used of course, in a short sale that the original owner was $60,000 upside down in. She is still paying it off, I have no payments. Who do you suppose is enjoying this more?

I didn't need to buy fancy cars, boats or other toys until I could pay cash for them. It is a great feeling, knowing that I earned every bit of it.

Just my way of making life work. So far it's been right for me, retired at 53 with everything paid off. 43 foot motorhome for the winter, 40 foot boat for the summer and a fancy car to drive in between, along with a collector car for sunny days, and a house when the mobile property isn't being used. Did I mention working 2 jobs for most of my working life?

Keep working on it, you can succeed.
Just my opinion, and I've been wrong before.

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Pierat

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Re: I can't afford my RV payment , now what?
« Reply #17 on: January 14, 2011, 09:44:59 PM »
Your lawyers and financial advisors are better sources of advice than online forums, however well intentioned and informed, and this is certainly a good one for RV matters. If you are in court or get there, remember what you say to others may be brought up there. Some ways to get out of debt are better than others for your future, and it is an individual case-by-case answer. What works for someone else may not work for you. You probably know that the laws are very complex. You could have a look at the ftc.gov site regarding handling debt and debt resolution scams: http://ftc.gov/bcp/menus/consumer/credit/debt.shtm  Good luck to you; you have a lot of company in this economy.
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