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what are the ramifications of a strategic default on a motor-home loan?
Optional Information: State/Country relating to question: Connecticut Already Tried: Nothing. The loan is current but I don't trust the bank to ask about a short sale or default. I think they would use that information to move against me.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.
If you default on the motor home, the lender would only be allowed to sue you for the balance, and sell the property.
However, they would still have to evict you from the motor home,
so the process will take time.
Your credit would be hurt, and you risk having your wages garnished, if they receive a default judgment against you.
If you file a bankruptcy the judgment would go away, and it may give you a few more months if not more to live in the property.
the rv is recreational. i would gladly deliver it anywhere they chose to be free of the payments.
You can contact the lender about taking it, however, in most cases they will still want you to pay them the balance,
how would they arrive at the residual value?
the market value would first have to be determined,
through a broker or some other appraiser,
then subtract that amount from the loan,
If their is a blue book value you can show them that would help,
Or you can contact them now and state you will be filing a bankruptcy, and that you may not if they take the RV from you and waive any future balance.
the blue book value is between $5 - $15 short. would they sue me for that much?
No,
their legal costs would be more then that to sue you,
you could also work out a payment plan for any balance that is owed as well.
they also hold my mortgage. can they affect it?
no, they can only go after the debt that is in default.
thx. this has been very helpfull
Experience: 13 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS