Top Things to Know About RV Repossessions
An owner of an RV can face repossession if the loan is in default. The RV is used as collateral against the loan, if default occurs and is not remedied, the lender can take possession of the RV. There are some things you should know about RV repossessions and how they affect you.
Default
In some states, the lender has the right to repossess the RV if a payment is missed by only one day or if the owner is consistently making late payments. Typically a lender will try to work with the owner of the RV before actual repossession occurs. An agreement might be constructed to allow the owner to retain possession of the RV while curing the default. It is best to contact the lender before there is a serious default that cannot be remedied.
Repossession
A repossession agent will be hired by the lender to take possession of the RV if an agreement is not made or met. The repossessions agent cannot breach the peace by threatening the owner or using any type of violence. If this occurs, the lender loses the right to collect any deficiencies in the amount that is owed to the lender after the RV is sold.
Notice
Lenders have just 48 hours to notify the owner that the RV has been repossessed. If the repossession occurred on the weekend, the time for notification is 72 hours.
Personal Property
You have a right to claim any personal property that was left inside the RV. If the RV was repossessed while you were home, the repossession agent must give you all person property before taking possession of the RV. If your RV was repossessed and you were not present, you will have to claim your personal items from the repossession agent. It is best to claim your property as soon as you can. Some agents will charge daily storage fees. If these items are unclaimed, they can be sold or disposed of.
Getting the RV Back
Before repossession occurs, the loan is accelerated. You are only able to reclaim your RV if the total amount owed, plus repossession fees, are paid in full. The lender might give you additional time to secure a loan with another lender; however, this is not usually the case. Depending on your state's law, the lender must hold your RV for a certain number of days until it is auctioned. Typically there is a 30 day waiting period. If possible, you can try to secure another loan during this time.