Credit Union Repo RV: Where to Buy Repossessed Motorhomes
One good place to search for cheaper motor homes is financial institutions. They have financed the purchase of these RVs, etc., and now they only want their money back. But that does not mean the repos will be in great shape.
When you get into this area of RVs and trailers, you will find that the banks do not do the auctions or selling directly. They will go through auction houses, used dealers, and other outlets that handle the hard work. But you may not always get a deal so be wary.
To learn more about finding these cheaper RVs for sale, just continue to read our article. It has the information you want to know about so you can buy an RV you like at a lower price than buying a new one. How much lower depends on the banks and credit unions.
Credit Union Repo RV 101
RV Bank Repossession
There are millions of RVs and campers, etc., that are financed by banks and credit unions. Unfortunately, that means there are hundreds of thousands of owners that fail to complete their payment schedules.
What that means is that there are more than enough RVs, trailers, etc., that you can possibly get at a lower price than if you bought new. There are more than enough outfits that handle the sale of these repos for the banks and other financial institutions.
However, be forewarned. Not all those websites on the results pages when you look for bank repos are selling bank repos. We found one selling new and used RVs, etc., not repos, and another website with no options listed.
Also, be wary that if the bank did foreclose on an RV, etc., that vehicle or trailer may not be in the best of shape. Some owners do tend to get a little angry and take their anger out on the trailer, etc. When they are about to lose it.
So be prepared to pay a little higher price, make some repairs or not find any listed in your area when you make this search. Saving money is good but sometimes the savings is not always there.
You can contact your local banks to see if they have any in stock and which agency they sell their repos through to get a jump on the next guy. It may take a little work to find a repo sale in your area.
Where To Buy Repossessed Motorhomes
This is a little tricky. When you do your search as we did, you will find out that many of the dealers saying they are selling bank repos, may not be selling bank repos. It is a bit technical in explanation but here goes.
When a used RV dealer buys a repo, they spend some money on repairs, marketing, cleaning, etc., then they add their mark up to cover their costs plus make a little profit.
You are not actually buying an RV or trailer that is classified as a repo. All you are doing is buying a used RV or trailer at the standard used price tag, whatever that may be for that model, year, and so on. To get an actual repo, you do need to go to the auction house, etc., that is handling the sale of the RV or trailer.
In other words, you need a direct seller authorized by the bank for it to be an actual repo at a real repo price. Or you need to buy from the actual lender for it to be a real repo.
Those are the two places you need to contact to get what you are looking for. As we said in the previous section, talking to your local banks will get you a little advantage as the dealers are doing the same thing.
If you believe those dealer results stating they are selling repos, then you are going to pay too much for the RV or trailer you want. The dealers' listings should say Not a Repo in them.
Repossessed RV For Sale By a Bank
Usually, any repo list will include a lot of other vehicles that are not RVs and trailers. It may take some time to go through those lists once you get a hold of them. But once you filter out the other items on those lists, you should have a few to look at and see if it is right for you.
Banks usually use auction houses, online auction services, and their own websites to get rid of those RVs, etc., that they have had to take back. This may take some searching on the internet to find because so many dealers clog up the results page with their own ads and inventory.
To find those websites or bank web pages, put the name of the bank plus the word repos in the search box. That should get you a list of items the banks want to get rid of and their asking price.
However, you may have to refine your search to keep your search local. Or you may end up with a long list from those national banks with branches in every city and state of the union.
You may need a lot of patience to work on those lists once you get them but the effort should pay off if you find what you want at a price you want. Hard work usually does pay off when you take your time and be thorough.
Credit Union Repo RV
It has been said that this is usually an easier search to do. One reason may be that credit unions are not as widely known, and their membership is lower than bank account holders at national banks.
They also do not have as many branches as nationally known banks. If this is too much of a search, you can always go to those websites that list the repos in every state, whether by bank or credit union.
However, those lists may not include RVs as one search only had 3 motorcycles listed in Georgia (on the landing page). You have to click through to get more listings as Texas has quite a few trailers listed.
You will have to sign up to place a bid and you can search that website by clicking this link. Or just contact your local credit union for a copy of their specific list or repos.
If you are a member of one, just talk to the manager or the loan department to see if they can get you a list. Take the simple ways first to make sure you get an accurate list as those lists can change once the repos are sold again.
Also, talk to the different credit unions about their rules of purchase. They may or may not be interested in refinancing the RVs, etc., they took back. Banks and credit unions may be hesitant to refinance the same RV, etc.
Repo RV For Sale in Tennessee
That link we gave you above will bring you to an American map. All you have to do is click on the state you want to look at and that click will bring you to the list of repos for that state.
But, you will only see 3 initially and you will have to click on the see more repos link at the bottom of those photos to get to the actual list. At the time of this writing, the list for Tennessee had only 1 Class A RV and 1 travel trailer.
There were a couple of boats and motorcycles but a long list of cars and trucks. This may be a good way to get the perfect tow vehicle at the same time or if you need to upgrade.
That link is a great way to find repos near you and in some cases, you may have to drive across the state to look at the one listed. Keep in mind that the lists will change from week to week as more are added to it and some are sold to new owners.
You may have to act fast as you won’t be the only one doing this type of search. Also, do not be disappointed if the model and brand are not on your list. Not everyone defaults on their loans so the selection will be limited. Have second and third choices ready when you do this search.
Repo RVs For Sale in Arizona
The same website produced far more trailers and RVs in Arizona than in Tennessee. There was no Class As listed but there were Class Bs and Cs available along with 5th wheel and travel trailers.
All you need to do is go through the list and click on the photo of the option you like and get a few more details on another web page. You will also get a close-up view of the RV or trailer for sale.
The bid is not listed until you sign up and that link is found under the section Repo information. When you click on that link you get the following information:
Largest Nationwide Bank Repo Database
No Dealer License Required – Buy directly from the bank or auction.
No Sales Fees or Commissions
Full Access to Featured Repo List
Unlimited Searches
Ad Free
Plus another link that says ‘buy now’. Signing up only costs $4.95 per month and it is said you can cancel at any time. There is also a list of FAQ questions that will provide a lot more information bout buying repos and so on.
To sign up you need a credit card number and an e-mail address. That seems to be the only requirement. Now, we are only using that one link as an example of what to expect on the lists and how to bid on a model you like.
Other companies may have similar processes to follow and different vehicles and RVs on their lists. We advise you to use your own search terms, etc., to get to any lists that you deem better to use than our example.
Repossessed RVs For Sale in Texas
Everything we said in the last two sections applies to Texas. It is the same website and the only difference is that the list is comprised of more trailers than anything else.
There were only 1 or 2 cars listed at the time of this writing, and the bulk of items on the list were travel trailers. Toys came in second followed by boats. They all look in good condition but those are one side photos giving you the best view of the item repoed.
The oldest trailers went back to a 2009 Keystone Freedom Elite MK 39and 2009 Sunny Brook Sunset 307RL. To get the details o those and other trailers on this list, use the link above.
These types of lists make it easier to search for repoes and find one at a price you can afford. One of the FAQ answers stated that many of the banks that own these trailers will be willing to refinance and possibly offer better interest rates.
But that remains to be seen. We suggest that you do your own search and look at other similar websites to see if you get a better selection or better details about the process and costs involved.
Prices are not listed on the website we used for these sections. If you go direct to the banks, and those lists will pop up in a good search, you will get a lot more information on the process.
How do You Buy a Repossessed RV?
One such credit union list that popped up was GoldenWest Credit Union and their procedure is as follows (taken from their website web page):
-All offers must be submitted for review on Monday by 10 am. Offers after that time will be reviewed the following week. Offers can be submitted online or in any branch. Offer forms can be found online at www.gwcu.org or at any branch. Offers may also be faxed to 801-621-0867 Attention Repos. Offers may not be submitted over the phone.
- Goldenwest Credit Union reserves the right to reject any offer determined to be unreasonable.
- Only the bidder with the accepted offer will be notified.
- If your offer is accepted and the transaction is not completed within 48hrs, we reserve the right to put the vehicle back up for auction.
- All vehicles are sold "AS IS" without warranty, either expressed or implied, as to mechanical or physical condition.
- Test drives are not permitted.
- All sales must be made with cash or certified funds. Credit Union financing is available OAC. Personal checks will not be accepted.
- Any and all property taxes will be the responsibility of the buyer.
- If paying asking price, vehicle may be purchased immediately.
Now every credit union and bank will have their own rules to follow and you should ask for them if you contact them directly. For example, Red River Credit Union states this on their website:
“All vehicles and foreclosed properties are sold in "as is" condition. There are no written or implied warranties or guarantees outside of any applicable manufacturers’ warranties. All offers subject to availability. Inventory subject to change. Red River Credit Union reserves the right to refuse any offer. All sales are final.”
These two credit unions came up in our generic search using the search term Credit Union repo RV. You should be able to find more individual credit unions in a different search
What Happens When Your RV is Repossessed?
The first thing that happens is that your credit rating will take a big hit. You may have trouble finding financing for other items you want to purchase. Another issue that may arise is that if you have someone co-sign for the RV, etc., the bank, etc., could go after the co-signer for their money.
These two actions all depend on if you had a co-signer or not and the laws of the state you got the loan. Then if the RV was in storage, you may be liable for any storage fees depending on your contract with the storage facility.
Then the lender has to tell you if you forgot any personal items in the RV, etc. They are not allowed to keep or sell those items. They are required to tell you what they found.
In some states, the lender is required to give you the date, time, and place of the auction so you get a chance to buy back the RV, etc. But you will be expected to pay the full amount if you are the winning bid.
There are other complications involved depending on the state you live in. You may be responsible for and be sued by the lender for deficiency. This is where you owe $15,000, the lender only gets $8000 at auction. You may be forced to pay the $7000 deficiency plus fees.
The reverse is true as well. If the lender sells the RV, etc., for more than you owe, they may be required to pay you the surplus. Look into your state’s laws so you know for sure.
Can I Give My Camper Back To The Bank?
You can but your credit rating should take a big hit. Lenders generally report these actions to the credit bureau. But this is not the worst of it. You may be required to pay any deficiency if the lender sells the RV for less than you owe.
Not only that, you may have to pay attorney fees, costs and other "pile ons" the lender decides to add to the charges. Because laws are different from state to state, you should talk to an attorney in your state that handles this type of legal work to get the correct information.
We cannot dispense legal advice and anything we say here is in generic form to give you an idea of what will happen. Talk to an attorney to make sure you get the right information and laws for your state.
You can bluff and say you will file for bankruptcy if the lender threatens you with a lawsuit for the deficiency or you can actually file bankruptcy to discharge any debt you owe.
That may stop the lender from pursuing that line of action. But talk to a lawyer first and ask them all your questions. That is the best way to answer this question.
How Can I Get Rid Of Negative Equity On My RV?
This can be difficult to do as negative equity is where you owe more than the RV, etc., is worth. This situation is an ever a pleasant one as you cannot afford to keep the RV nor can you afford to sell it.
You can turn the RV back to the bank voluntarily but you may still be sued for deficiency and owe a lot of money. Or you can find someone to loan you the money to pay off the loan but that is even harder to do as the new lender may not like the situation.
People get into these problems because they do not understand RV value, depreciation, and taxes. The best way to solve this problem would be to rent your RV to people interested in the experience but who do not want to have the financial responsibility that comes with RV ownership.
There are plenty of organizations that will help you rent your RV.
Some Final Words
Before you use this method of RV ownership, do your research as even with repos, depreciation is a factor and you may end up owing more than the RV is worth.
Know the laws of your state or have a good lawyer on hand to help you understand the ins and out of RV financing so you do not get caught by a downturn in the market.
Getting a good deal on a repo is fun, the other side of the coin is not.
