Best way to default on a motorhome?
Date: Wed, 11/11/2009 - 13:12
We have a motor home that we purchased in 2005/2006 for about $237k. We owe $197k. We are just now late on our 1st payment because my husband is a framer and can't find work in this economy and hasn't for quite some time. We've eaten through savings and are selling off things to pay our mortgage and basically living off of credit cards and maybe a job a month now. I know, credit cards are a last resort but we have to eat and use gas to find work & get kids to school.
The bank suggested we short sell the motor home but we can't seem to find a buyer. What do you suggest we do if we can't find one? We will be 30 days late soon. Our credit is excellent(for the next week or 2 anyhow). I know we'll take a hit but I don't want to owe the $80k or so that will be left on the loan if they repo and sell at wholesale.
We have a 1st mortgage, no car payments, retirement savings of about $70k that I'd rather leave as a last resort.
Is bankruptcy an option with this high of debt? Would a repo be better? I don't know what to do. :(
The bank suggested we short sell the motor home but we can't seem to find a buyer. What do you suggest we do if we can't find one? We will be 30 days late soon. Our credit is excellent(for the next week or 2 anyhow). I know we'll take a hit but I don't want to owe the $80k or so that will be left on the loan if they repo and sell at wholesale.
We have a 1st mortgage, no car payments, retirement savings of about $70k that I'd rather leave as a last resort.
Is bankruptcy an option with this high of debt? Would a repo be better? I don't know what to do. :(
Short sale can be your option but for that you need to list the
Short sale can be your option but for that you need to list the property in the market. It may take some time. Anyway, even after short sale you'd be responsible for the amount if the property is sold at a lesser price than what you owe on it. Another option for you can be 'deed in lieu', where the lender would write off the deficient amount. However, it'd have a greater impact on your credit score.
Bankruptcy should be your last option. If nothing works for you then BK could be the solution.
