If Iowe more on my motorhome then it is worth, can I stop payments and have them repossess it without penalty?

I owe $140,000 on my motorhome; it is worth about $80,000. Can I get out of the payments without a judgement or lien against my other

Asked on August 30, 2011 Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately, it's not up to you whether you can give the motor home to the lender without penalty--it's up to the lender. The lender is entitled, from what you write, to $140,000. They are allowed to reposses the home if you default in order to apply the value of the home--that is, whatever it brings in at sale or auction--to the money due them. But unless the motor home, when sold, covers the full amount due and owing, they are allowed to sue you  for the balance. So from what you write, if you owe $140k and the home is worth $80k, after it is repossessed, the lender could choose to sue you for $60k. You can try to negotiate with them, and see if they'll accept the motor home, or maybe the motor home plus some cash, as payment in full; but it's up to the lender to decide.

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