Go Back   iRV2 Forums > MOTORHOME FORUMS > Class A Motorhome Discussions
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
Thread Tools Search this Thread Display Modes
Old 03-26-2012, 08:41 PM   #1
u649024's Avatar
Newmar Owners Club
Join Date: Feb 2012
Posts: 58
Made An Offer

Well last night we made an offer on a 2003 Monaco Diplomat 40 PBDD. The owner accepted our offer but there are complications. It turns out he is "upsidedown" or "underwater", he owes more than the coach is worth. He is going to contact the lien holder and try to work something out so we're not sure how this will end up. Obviously we won't pay without a free and clear title. Any of you folks have experience, good or bad, with this type situtation, any advice, precautions.

Cliff, Charlene, & Brown Dog (Rescued Choc Lab) 2015 Dutch Star 4366
"If you're not the lead dog the view never changes"
u649024 is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 03-26-2012, 08:56 PM   #2
Senior Member
Join Date: Nov 2010
Posts: 1,191
I would talk to the lender directly. Anything I did on it would be laid out in writing in contractual form with a guaranteed accepted payoff.
These can get sticky if the seller can't cover the diff

laj is offline   Reply With Quote
Old 03-26-2012, 09:00 PM   #3
Senior Member
Davdeb1's Avatar

Monaco Owners Club
Freightliner Owners Club
iRV2 No Limits Club
Join Date: Jan 2011
Location: Avon Lake, Oh
Posts: 2,788
If you are taking a loan, you can arrange the purchase with a letter of credit. This simply states that the lien holder will get the check for the vehicle upon receipt of a free and clear title.

If you are paying cash, you should finance it like that anyway, then pay it off once your bank gets clear title.
40 FT--330HP CAT
2 SLIDES-TOAD 2012 focus
Fulltime-Home is where we park it.
Davdeb1 is offline   Reply With Quote
Old 03-27-2012, 09:32 AM   #4
Community Moderator
JMonroe's Avatar

Newmar Owners Club
Spartan Chassis
Join Date: Oct 2009
Location: On the road again
Posts: 6,158
I use to deal with this sort of thing all the time when I was a claims adjuster for State Farm insurance. People would take out 5 or 6 year loans, small or no down payment, and when their car was totalled in an accident they would, of course, owe more than it was worth. Your insurance policy will pay the retail value of the car, regardless of the amount of the outstanding loan (unless you have gap insurance). 99% of the time a simple call to the lien holder would get a lien release sent to me. The conversation would go something like this... "you can maintain your lien on a pile of rubble, or you can get a guaranteed payment for the majority, immeadiately" (we could not issue payment until the status of the lien was resolved). Your case is a bit different, but I'd still call the lien holder..."You can get the majority of you money immeadiately, in a lump sum, or you can hope your struggling customer can and will continue to make payments on the property he's no longer using".

In either case, the original owner is still legally bound to pay the balance to the leinholder. I was never involved in that end so I have no idea what arrangements were agreed to.

You are absolutely right, do NOT give anyone any money until you have a lien clear title in hand.

Good luck!
Jay & Peggy Monroe with Dolly
Can't take it with you - don't plan on leaving any behind
2016 Newmar London Aire 4553, Spartan chassis
Wrangler Unlimited toad
JMonroe is online now   Reply With Quote
Old 03-27-2012, 09:50 AM   #5
Senior Member
Steve N Sal's Avatar
Newmar Owners Club
Workhorse Chassis Owner
Join Date: Oct 2007
Location: Michigan
Posts: 5,590
If he would give you the information on the lien holder so you could talk with them then I guess I would procede to see what might happen. If not or if the lien holder doesn't want to discuss it I would just not waste anymore time and start looking again. There are plenty of coaches available out there.
Steve & Sally / HiTee & Hudson Our Little Poms / Heidi & Houston Forever in our Hearts
04 NEWMAR MACA 3778 W22 / 05 PT Vert
Michigan (Summer) Florida (Winter)
Steve N Sal is offline   Reply With Quote
Old 03-27-2012, 10:57 AM   #6
Senior Member
38 Special's Avatar
Monaco Owners Club
Join Date: Aug 2010
Location: Irondale, Alabama
Posts: 470
When I bought my 02 Diplomat, the seller was upside down. I talked to Bank Of America directly after he authorized it by calling them. I got his payoff and they agreed to send the title to me directly. He and I went together to the post office and put our checks in the envelope and together, we mailed it to Bank Of America. There was not an office close, or we would have gone to the branch. Worked out perfect.

Now, it the seller does not have the ability to write the check to cover his part, that is different, and not what I was involved in. He wrote a $7,000+ check to get out.
2008 Monaco Camelot 42 DSQ
Irondale, Alabama
38 Special is offline   Reply With Quote
Old 03-27-2012, 11:06 AM   #7
Senior Member
greezykid's Avatar
Join Date: Nov 2010
Location: Ocala Fl.
Posts: 374
I bought one that seller had to take out $30.000 loan to get title clear ,did it all at same bank and had no problems.
greezykid is offline   Reply With Quote
Old 03-27-2012, 04:52 PM   #8
Moderator Emeritus
Gary RVRoamer's Avatar

Fleetwood Owners Club
Freightliner Owners Club
Join Date: Jan 2000
Location: Silver Springs, FL. USA
Posts: 16,418
It's a very common thing, especially these days. Often the lender will agree to a "short sale" and agree to release the title when he gets your check (which should be made payable to owner and lender. However, you, the owner and the lender should agree to this in advance and in writing. Then you get the title and the balance is between the ex-owner and the lender. If the lender won't agree to release the title upon receipt of your check, then hang on to your money until the owner and the lender get it sorted out.
Gary Brinck
2004 American Tradition; 2014 Buick LaCRosse
Homebase in the Ocala Nat'l Forest near Ocala, FL
Gary RVRoamer is offline   Reply With Quote
Old 03-27-2012, 05:27 PM   #9
Moderator Emeritus
TXiceman's Avatar

Vintage RV Owners Club
Texas Boomers Club
Oklahoma Boomers Club
Ford Super Duty Owner
Join Date: Aug 2000
Location: Full Time, TX Home Base
Posts: 17,139
Blog Entries: 21
I agree, you need to speak directly to the lender about the sale. You might get the owner to call in while you are there and both of you can speak to the lender.

Amateur Radio Operator (KE5DFR)|Full-Time! - 2012 6.7L Ford Crew Cab Dually -2013 HitchHiker Champagne 38RLRSB - Travel with one Standard Schnauzer and one small Timneh African Gray Parrot
TXiceman is offline   Reply With Quote
Old 03-27-2012, 06:21 PM   #10
Senior Member
Smitty77's Avatar
Join Date: Aug 2010
Location: Over the next hill, around the next curve...
Posts: 2,381
Key message of all of these posts, and to be clear, no to anyone, until the process is sorted out. Not even earnest money up front.

Sounds like a Short Sale from the way you wrote your post. These can work well, or they can go nowhere real fast.

Repeating the same input again:
-Talk directly with the lean holder
-If they OK the short sale (or, if it is the owners responsibility to write that check to make the loan paid off) - then go in an do the transaction in person.
-No cashiers check, without pink slip and lean release, period.

These can be worth it, as you must have liked the coach or you would have never made the offer. Just be sure to look out for yourselves in this situation. I have seen a local seller, try to 'Short Sale' the same Travel Supreme multiple times in a 14 month period. (I know, as I made an offer on this Travel Supreme). When she wanted me to write a 'earnest money' check to her to hold it, a non refundable $5K - I started to smell a bad situation... Sure enough, it was - and I was glad to have not got involved on that coach. Saying that as a reference, and by the way - this person made a local news story for what she was doing... Having burned 4 people that they knew of... But, many honest people are upside down, and looking for away forward - so just keep your eyes open.

Best of luck, hope this becomes your rig of fun!
Roo II is our 04 Country Coach Allure 40'
OnDRoad for The JRNY! Enjoy life...
Smitty77 is offline   Reply With Quote
Old 03-29-2012, 06:40 PM   #11
Senior Member/RVM #90
MSHappyCampers's Avatar

Monaco Owners Club
Join Date: Nov 2002
Location: Columbus, MS
Posts: 19,256
The coach we just bought was the same way. He owed the bank $9000 more than we paid for the coach. We met at the bank, I gave them a bank check for the purchase price and he put the balance on a credit card. We now have the title. Good luck!
Joe & Annette

2002 Monaco Windsor 40PBT, 2013 Honda CRV AWD
MSHappyCampers is online now   Reply With Quote
Old 03-29-2012, 10:17 PM   #12
Senior Member
B Bob's Avatar
Join Date: Sep 2010
Posts: 1,140
When I bought our motor home 30 months ago the seller had to pay the bank more than I paid for the motor home to clear his loan. We waited until he did that before we paid for the coach.
B Bob
Country Coach 42' Affinity
2013 Jeep Wrangler Unlimited
B Bob is offline   Reply With Quote
Old 03-30-2012, 05:11 AM   #13
Senior Member
Join Date: Jan 2011
Location: Debary Fl
Posts: 464
I doubt the lender will agree to a "short sale" where they don't recieve the full amount of payoff. As others have said you and the seller need to get togather with the lender, and make sure when your $$$$ changes hands you will recieve clear title. If you plan on financing the 2 lenders will get it all worked out just make sure your lender knows the total sale price you are offering.

Bruce Linda and Zoey
1999 ForeTravel U295
012 orange Jeep Wrangler
bbeane is offline   Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Cutting an access hole from bottom for back of Hydro Hot kraig Alpine Coach Owner's Forum 7 05-18-2012 02:45 PM
Need an inverter for CPAP machine?? Bounder4rfun Boondocking 37 04-04-2012 10:46 PM
Garmin GPS or use an iPad app instead? vanvectra07 Technology: Internet, TV, Satellite, Cell Phones, etc. 30 04-04-2012 11:31 AM
looking for an inverter... ivan_drago RV Systems & Appliances 1 03-26-2012 03:11 AM
Made it. Rsanchez24 Just Conversation 9 03-23-2012 11:27 PM

» Virginia Campgrounds

Reviews provided by

Our Communities

Our communities encompass many different hobbies and interests, but each one is built on friendly, intelligent membership.

» More about our Communities

Automotive Communities

Our Automotive communities encompass many different makes and models. From U.S. domestics to European Saloons.

» More about our Automotive Communities

Marine Communities

Our Marine websites focus on Cruising and Sailing Vessels, including forums and the largest cruising Wiki project on the web today.

» More about our Marine Communities

Copyright 2002-2015 Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 12:55 PM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.