Motorhome foreclosures are motorhomes that have already been foreclosed on by a lender. These RVs or foreclosed motorhomes can be found at auction events where cars are sold, RV auctions where other RVs are sold, or even being auctioned off by the banks themselves. A lot of times, they will even be consigned to a dealer and the bank will receive payment once the motorhome is sold. The best opportunity to get a great deal is either at a live auction sale or else negotiating directly with the bank, before the foreclose process has gone through.
Although some people might argue that looking for foreclosed motorhomes is heartless and takes advantage of someone else’s loss, this is not the case. Finding motorhome foreclosures for sale is a great way to save money and help others. If you are lucky enough to find and buy them while they are in pre-foreclosure, you will not only be able to save money but you may also be able to save the current owner’s credit.
When buying a pre foreclosure motorhome it is important to remember that not all of them are good deals. If the numbers don’t work, find a deal that will. A lot of this depends on if the current owners have equity in the motorhome or if the lenders are willing to negotiate to a good price. When dealing direct with sellers, I found that roughly 10% of reasonably priced sellers were selling to avoid foreclosure. (*varies with economy.) Finding these sellers is a process of talking to a lot of sellers and then finding out which are the most motivated to sell quickly.
It is important to know the pay off amount, including taxes, interest and fees. Now you need to get approval for a short sale, from the lender or the owner. If you are offering less than is owed the bank, you will need to get their approval. Some banks won’t negotiate, but most will take 70 to 80% of what is owed on first mortgage. Multiple loans make it harder to negotiate, most 2nd and 3rd lein holders will get nothing if the motorhome goes to auction, and they may be willing to negotiate for 10 to 25% of what is owed. If you are negotiating with a seller that has a lot of equity, it is important to remember that they are trading the equity in their motor home for security and peace of mind. In this instances, negotiation with a bank may not even be needed.
The next way to buy motorhome foreclosures is at motorhome auctions. A lot of auctions sell for 60-70% of what they would sell for private party. You can look in the rv classified section, or you can scour the internet and newspaper for boat and car auctions, which also frequently sell RVs.
A lot of auctions are held on a monthly or quarterly basis. Attending regularly will open up opportunities for you to find some of the best deals.