If someone defaults on a motor home loan, what will happen?
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If someone defaults on a motor home loan, what will happen?
Motor home is held jointly by husband and wife. Husband passed away leaving everything to wife in Will. Wife is elderly and needs 24 hour care and has less than 100K in savings, no other assets, and needs her savings to help pay for care. Letting the bank pickup the motor home. How will they handle the deficiency since they won’t be able to sell it for what it’s worth. Is there a possibility that they will extinguish the debt and not go after the wife? Can they go after her funds or her SS income? Is it best to move her savings to another account not in her name?
Asked on May 13, 2011 under Bankruptcy Law, Texas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. Yes, you can absolutely negotiate a deficiency and ultimately a deficiency judgement with anyone and you should do so before things get out of control. Do not just let them pick up the trailer without something in writing. If they do not waive then they can get a deficiency judgement and although SS is exempt, the $100K is not. And if attempt to transfer to defraud creditors - that is what it will be called - you run the risk of having them go to court and void the transfer. Get help on this matter. It may be too much for you to deal with on your own. Good luck.
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