Foreclosed RV FAQs
Q. What does it mean when an RV is repossessed?
A. When an owner no longer is current with their payments on the loan they used to buy their RV, then the bank will notify them that they are looking at foreclosure and having their RV repossessed, i.e. taken back by the bank.
Q. Should I buy an RV facing rv foreclosure from the owner or wait until the lender repossesses it?
A. It can be simpler to buy from the owner but you will probably pay less if you buy an RV at a bank repo auction.
Q. What is a short sale and is it a good idea to buy an RV that way?
A. A short sale occurs if the bank agrees to let the owner sell the RV for less than they owe on the loan. The bank either forgives the additional amount or the owner has to pay it. This can be a good way to save money, though it can take awhile.
Q. Are foreclosed RVs worth buying?
A. Absolutely. They are usually well-maintained and frequently only a year or two old because foreclosures tend to happen early in ownership. They often have several upgrades but cost a lot less, so you can get a better RV for less money than buying new.
Q. Why are prices so low at repo auctions?
A. Banks don’t want to pay the costs or deal with the issues of maintaining and storing the RVs. They want to sell them fast for what they can get and remove them from their books. They usually start bids low to get more people bidding on them.
Q. How does the bidding work?
A. For a silent rv auction, your bid will be put in an envelope and collected. After all the bids are in, the envelopes are opened and the highest bid will get the RV. In a live auction you will bid at the same time as others until no one wants to outbid the highest bidder. The second is much more exciting and it can be tempting to bid more than you want. Have a maximum price in your bid and don’t go over it to make sure that you get the good deal you are hoping for.
