questions & answers

Question: I owe $35,000.00 on a 2000 motorhome I can't make payments anymore as I don't have the means. I tried to surrender it, but was told to try to sell it myself, I have a buyer, willing to pay $20,000 for it.But I need the title for it before the buyer gives me the money. the creditor is not willing to send me the title yet. what can I do? this is better for the creditor, because they don't have to come get it themselves.

Answer:

As with a lien on an automobile title by a car loan company, liens on other secured loans such as motor homes, are not required by law to be released until the debt is paid IN FULL.  Unless the lender formally consents to accept $20,000 for this $35,000 debt, you will remain obligated to pay the full amount, because (according to the contract you signed) the lien/loan amount, is for the original, not the depreciated, value of the motor home.  You can ask, but don’t expect,m the lender to compromise, based upon your circumstances…and because $20,000 is more than if you “Default” and pay nothing on the loan, but a Default creates many other problems for you, the debtor (see other information on this website re Debt Collection)