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A: RV foreclosure is the process of losing a motorhome to the lender after payments have ceased or become delinquent.  When payment are more then 3 months late, lenders will repossess foreclosed motorhomes and RVs.

 

Motor home foreclosure is most easily avoided by keeping payments current.  Once the motorhome has been repossessed, you are no longer the owner.  (Although you may still be held accountable for any loss the bank incurs when they resell it.)

 

A: In nearly every case, it is a better option to sell it yourself even if you incur a loss.  You will probably get more for it then the bank will.  The bank will sell it for whatever they can get.  If they loose lot of money selling it at an auction, they might even come after you for the difference.  The bank is interested in a very quick sell, if you sell it yourself you may be able to be more patient and get a better offer.  Also RV foreclosures stay on your credit for 3 years.

A: 1.  Sell it as fast as you can.  If you have to take a small loss borrow from a friend or relative or from the bank in the form of an unsecured line of credit.  Pay it back as soon as you can.  Remember your motor home is still dropping in value.  If it is a large loss, you may want to look into a secured line of credit such as an equity line or a mortgage loan with a longer payback period but smaller payments.

2. Sell it or consign it with a dealer is another option but keep in mind that they sell most every thing in the spring and summer.  You may have to wait a while or have to take less for it in the Fall or Winter.  Some warmer climate like California and Florida may still sell well during the winter. 

3.  Trade it in for something smaller.  If this gives you a smaller payment it may be worth it to you.  It could be a good way to avoid motor home foreclosure.

4.  Some lenders may allow a buyer to assume your mortgage.  This allows them to take transfer the debt into their name and the assume your payments.  (Although the recent tightening of credit markets had made this quite rare.)

5.  If you know you are going to be late on payments it usually works better to be proactive and contact the lenders first.  This may even help you avoid motorhome foreclosure all together.  I know a lady who called her lender and got her payments waived for 3 months, (but added to the back end) to give her a little more flexibility and help her sell when she wasn't able to make her payments.  She wasn't late and both her and the lender were better off because of the agreement.
                 

A: This is when the bank agrees to take less on the motorhome then is owed to avoid foreclosure.  They may do this because they feel they are not going to get all that is owed after foreclosing but they also don't want the have it on their books as a non preforming assets.  Plus any time effort and commissions they have to pay to sell it is money that they are also losing.  Short selling the bank works best when rv foreclosure is unavoidable.  As a buyer, this may allow you to get the motorhome for 20-30% less then NADA value. This may be a better deal for the seller because although it still damages credit, it is not as bad because the debt has been somewhat settled and the foreclosure does not take place.