How to Buy an RV Using an RV Short Sale
An RV short sale occurs when an owner sells their RV for less than the amount they owe on it. Often the RV is facing repossession and the seller has been unable to sell it for more. A desperate seller with an RV on the market for awhile combines to create a really great deal for a lucky buyer.
How to Spot Potential Short Sale Opportunities
Frequently, the seller will give you hints in their advertising of just how eager they are to get their RV sold by including something like, “motivated to sell,” “need to sell right away,” or “will accept all offers.” Look for ads on RV websites, in online classifieds and on sites like Craigslist. You can ask when you call if they would consider a short sale or wait until you have come to look at the RV. It is up to you, but you may waste time checking out RVs when their owners won’t consider one. They will probably be more open to it if their RV has been on the market for a longer time. If they just recently listed it, they’ll likely be more interested in trying to sell it for their asking price. In any case, it doesn’t hurt to leave your number in the event they change their minds.
Be sure to use word of mouth to find more sellers. Many just advertise by putting a sign up on the RV. Asking your friends and neighbors if they know anyone trying to sell their motorhome can mean having an inside track to just how much they want to sell it, and whether they would take the lower price of a short sale.
How to Work Out a Short Sale RV
Once you have found a willing owner and tentatively agreed to a price, they will need to take the offer back to their lender to see if the lender will agree as well. Whether or not they approve an RV short sale depends on the lender and their policies, how much lower the selling price is than the amount remaining on the loan, and whether or not the seller has agreed to make up the difference.
Often the lenders are pretty agreeable to short sales when the owner pays the difference right away, because they get all their money, but many owners are facing repossession because of money issues and usually don’t have the extra cash. They generally want the bank to accept the lower amount as payment in full, which they will sometimes do. It is also possible that they will accept the difference from the seller through a payment plan.
During the negotiation between the RV owner and the lender, try to remain patient as they work it all out. Also keep in mind that even if the bank agrees originally, they can change their minds. It can take longer to buy using a short sale and there will be more paperwork, but when it all works out, you will get a great RV at a good price, and the owner can avoid RV repossession.
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