[bogeyon1]

My elderly mother has a motorhome that they purchased a couple of years ago so her and her new husband could do some traveling. Due to declining health they are unable to do this anymore. They have tried to sell this motorhome for the last 6 months or so and have not been successful. She really needs to get out of the $1000 a month payment. She was told that if she were to let it go back and be repossessed that they could take her house, cars,etc. even though she had not put any of these items up for collateral. Is this true or is someone just trying to scare her.

[Mr. Knowitall]

If they end up with an arrearage after the motorhome is sold, as will likely be the case, the lender will typically try to collect that arrearage. The means by which collection can occur will vary by state; if they get a judgment, typically they can go after liquid assets (such as bank accounts), wage garnishment (limited by state law), and if they choose can try to seize and sell non-exempt personal property (exemptions vary by state).

A repossession is very damaging to the debtor's credit rating, the lender will almost always end up selling the vehicle for substantially less than could be obtained through a private sale, and the debtor faces collection efforts and possible litigation over the arrearage. It is almost always better for the debtor to sell the vehicle, and borrow the money to pay off the balance of the loan.

[bogeyon1]

thanks for this info Knowitall. I will pass on your advice.