If you have never gone through foreclosure, then you probably don’t ever want to have to experience it.  It is an awful feeling to know that you can no longer afford to make your payments, and that you will lose something that you have paid off and may even have equity in.  When you fall behind in your payments, this is when the bank will repossess what you owe.

It is a good idea to keep a budget every month.  Make sure that you are not getting further and further into debt.  Make sure that each month you have a positive cash flow from your budget.  If you fall behind on your budget due to losing hours at work or a pay cut, then the next  thing for you to do is to start selling stuff.  Try and make up the difference by the end of the month.  If you think that it is inevitable that you’re going to lose your RV to foreclosure, then see if you can sell your RV right away. The chances are in your favor that you will be able to get a lot more for it, than after it becomes a repossessed RV and it is sold at an RV auction.

Another disadvantage of having your RV repossessed and sold is that the bank will come back to you for the difference.  Even if you have to short sell the RV, the bank will have to sign off on the short sale, and they will probably not come after you for the difference.  If you sell the RV at an auction, the bank can and may definitely come back for you for the amount owed.  In addition they will make you responsible for the loss on the motorhome and make you pay for this as part of your tax return.

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