arrgh, where to start the basics...stubborn parents in their mid 70"s with little debt, small pensions and little in savings, house paid for ( currently living in WV ) ....about 8 years ago they bought an RV, payment terms of $ 500 per month for 15 years, at the time they were receiving monthly money from a 401 or similar equal to the payment of $ 500.....well according to them the retirement isn't paying what it used to ??, and they are pretty closed lip about the finances. the facts ....Dad is in early stages of Alzheimer's, and will not admit it, he just bought a new car, but will not be driving for much longer IMHO, mom is in good health, but will probably be left with a mess, unless I step in and help in some way. the bad.......the RV hasn't moved of ran in the last 2.5 years, sat outside for 8 years in WV winters, it now has bad roof leak and there is a serious mold issue, all of this is more than they can take care of or have the funds to deal with. Currently the RV is worth about $ 13,000 or less but they own about $ 35,000 the stubborn part.....I've had basic conversations about future planning " in case something happens " and the conversation goes no where, my parents are "old school" and believe in doing whats right, I don't think the dishonor of not paying for something is even in their vocabulary ?? what I think is they need to give the RV back....at their age, why is this something they should have to worry about.....so what can happen, how does it work, how do they repo something they cant get to move, what will happen to their credit, will it even matter at their age, what if there is a judgement, will it affect the will or probate..... I don't live in the same state they do, I am not very savy when it comes to money either, but don't wanna see what little $$ they have go towards this issue, that we might be able to make arrangements to divert now, rather than it be an issue later and find out my mom simply can't make ends meet. Can I negotiate with the lender for them, or will I need to get POA, I don't think its something my mom can handle alone. I'd be happy to disclose more info if needed, but right now I'm looking for the basics of where to start. thanks all, Mark
Yes, you will need power of attorney if you want to act on their behalf for any financial matters like this. Now, if you choose to voluntarily give back the RV, you have to keep in mind that it won't make the problem go away. In theory it could initially cost less than a normal repo would because a "repo man" doesn't have to be hired, but the lender will most likely still pursue a judgment for the deficiency balance, which means the lender could place a lien on your parent's home or other assets if they're unable to pay. In the end, they might end up owing more than they are in the hole now. It will damage their credit too, but that may not be a huge issue at their age if they have no intention of buying another home or applying for additional credit. The other issue is that the RV is in bad shape and not drivable. That means you'll likely have to pay to have it towed anyway, so a voluntary repo really isn't going to be much different than a normal repo in this situation because you can't drive it in and turn over the keys. I would contact the lender and see what options they can present to your parents. You could also try getting the RV runnable and then trying to sell to a private party. Then you might be able to sign an unsecured loan for the balance with the lender, which would significantly drop the payments. There's no easy solution here, but I also don't think a voluntary repo is the right way to go. In reality, the math usually doesn't work out in your favor and you end up owing even more to the lender.
Mark, I am sorry that you are going to through a difficult time trying to help your parents out with RV that they are upside down on now. I would research all of your options before just giving up and letting the bank repossess the RV, like Josh suggested. Hopefully the bank can work something out with your parents. Thanks! Heather with BoostMyScore.NET
