Legal Question in Credit and Debt Law in Florida

Repossess a rv

My husband got laid off from his job. We bought a rv a couple of years ago and while he had his job we could afford the rv. Now we can't. What would happen if we can't make the payment? Will they repossess it. And what will happen to the loan? my credit?

Asked on 2/23/09, 8:41 pm

2 Answers from Attorneys

Raymond LaBella LaBella Law, P.L.
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Re: Repossess a rv

With RV's, you can expect that if you let the loan fall about 30-60 days past due, then the reposession is coming. After the bank repos the vehilce, they will send you a notice of their intention to sell it. The vehicle will be sent to auction and the auction sale will be credited to your loan.

The bank will then most likely demand payment for an deficiency, after they have added back in repo and reconditioning costs. If you do not voluntarily pay the full deficiency, then they will file a lawsuit to collect.

The credit bureau impact begins at the first delinquent payment and the farther behind it gets, the worse it will look. Auto loans, because of their size, carry a lot of FICO weight, so you will see a serious drop in your score if the loan goes into default (at repo).

If the loan is being carried by a smaller lender, you may want to talk to them about working out a repayment plan, or maybe even talk to Consumer Credit Counseling Services (CCCS) to address all of your debts since your husband is laid off. Unfortunately, bankruptcy will not help you keep an RV, so that is not really an option to solve this specific problem.

For more info on reposessions, you can check out our website at www.LaBellaLaw.com.

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2/24/09, 4:08 pm
Brent Rose The Orsini & Rose Law Firm
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Re: Repossess a rv

They'll probably repossess it, put it on your credit, and sue you for the deficiency of whatever is left on the loan after they sell it to recoup some of their loss.

You should try and call them to see if they'll lower your payments or interest rate, even if it's just temporarily until things turn around for you.

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2/23/09, 10:29 pm

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