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Old 08-11-2013, 05:01 PM   #29
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When we were looking at our MH in October, there was a Damon on the lot that had just come in as a repo, it needed a LOT of work. The people who had bought it had just bought it at the beginning of the season, say, April/May-ish. They apparently had just lost everything but no one knew it yet, so the bank lent them the money for the coach. They spent the summer camping and trashed it, never made a payment, etc. I guess it was their last hurrah.

The banks have reason to be leery.
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Old 08-11-2013, 05:08 PM   #30
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I completely agree with the banks position I am just going to save cash and look for a great buy.
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Old 08-11-2013, 06:20 PM   #31
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If you are an Escapee you can get a loan through Alliant Credit Union at very good rates.

Lazy dealers and lazy bankers are why these "rules" appear.

Barb
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Old 08-11-2013, 06:38 PM   #32
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Originally Posted by TXiceman View Post
Seems the banks are finding another way to slit their own wrist once more.

Ken
Look at Doc's post,I think he is right own,would you loan $ and take a chance not finding someone hiding?
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Old 08-11-2013, 08:45 PM   #33
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Look at Doc's post,I think he is right own,would you loan $ and take a chance not finding someone hiding?
Prepare to be put to sleep.
As Barbaraok and others have said - fulltimer loans are still available. Like other lending, fulltimer loans may be under tighter standards and by fewer lenders due to changes in Reg Z and TILA requirements. In addition, the financial collapse put significant pressure on the RV industry as a whole. Many companies went out of business or through restructure, further hampering the lending environment. Lenders like to know that there is a manufacturer behind the assets they are lending on.

In simplified terms - lenders are in the risk business. They attempt to project the severity of loss and the loss incidence for specific loans based on a number of loan, borrower, unit and other factors.

Loss incidence is influenced by things like loan to value, credit history, credit rating, debt to income, debt to asset, the lenders own and / or industry standard delinquency and default rates for example.

Loss severity is influenced by sales price, original loan to value, mark to market loan to value (estimated depreciation), age and condition of unit, unit make and model, and other factors.

Quantifying the level of risk for a fulltimer versus a traditional borrower loan is probably supported by little imperial data. Either borrower could default and run. The traditional borrower could sell their home or toss the keys in the mailbox and hit the road. The fulltimer could go into hiding. While either can run, in the aggregate, running by borrower type is probably non causal in defining incidence of default. In either event, both borrowers would need to go on a cash diet / basis or they would be found pretty quickly these days.

The point is, it's the incidence of default that's in question in assigning a higher risk to fulltimers. The difference between one and the other can be easily handled with a quarter point or more in rate, and / or a shorter term or higher down payment, maximum loan amount, or a combination of these.

The lender is required to hold loss reserves based on the type of loans on their books, the incidence and severity of their loss expectations, etc. Removing the presence of fulltimer loans would likely have a small impact on the loss reserves and the overall number of loans on the books.

My guess is that the incidence and loss on two like units, sold at like prices to similarly qualified borrowers, with the same amount down will be similar whether fultimer or not.

While the above is a simplified explanation of risk assessment, it is basically what happens. It's modeled and run by statistical programs in computers but those are the basic inputs. As long as it remains legal to make fulltimer loans, they will be made for "well qualified" borrowers. It's not personal, it's business. And while credit risk management is a mix of art and science, it's fairly well established and absent extreme market events, has pretty good track record. JMHO. YMMV
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Old 08-11-2013, 09:58 PM   #34
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I don't really have an interest in full-timing, but if I did, I'd rent out my stick house, using a property management company to take care of the day to day stuff (I have one in the family), and use the money I get from rent to subsidize my MH payments. Have rented out a house in the past and used a property management company - the fees are not much, and you can write them off. I had to pay a finders fee when a new renter was needed, but it wasn't large. You get a bad renter every so often, but for the most part it's a pretty good deal. And if full timing in an RV doesn't make sense some time in the future, there's something to fall back on. You also have something to leave from your kids.
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Old 08-11-2013, 10:35 PM   #35
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Well I don't miss all the crap I put up with I miss the RV, but I love my freedoms and once I get another RV, ill really be free. I think I really like the Coachman RVs they seem a little better than the Winnebago I had.
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Old 08-11-2013, 10:44 PM   #36
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I never get why people open their lives up for a "loan" application. I have NEVER divulged more than I needed to on ANY loan application. Even then I kept it relevant to the transaction. Im even more amazed you folks are trusting a retailer with financial info only worthy of a financial institution. There are many places that will loan you the $$$ if you know where to look.
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Old 08-11-2013, 10:54 PM   #37
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Based on my bad credit from my divorce I think it is safe to say a loan in my situation is just not possible. I'm asking to borrow $100,000 to buy a luxury item? Yeah I'm really dreaming here. I wi have to live cheap save every penny and pay cash. The upside is it will be paid for. I think I can do this in 4 years.
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Old 08-11-2013, 11:19 PM   #38
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Another possibility, so many individuals have walked away from their home mortgages that many lenders feel the same could happen with full timers who's rigs are their homes.
That's what I was thinking. A LOT of people just walked away from their obligations and three years later they are back in the market.

So I can see where the banks are coming from. But it sure makes it hard on the honest folks out there.
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Old 08-11-2013, 11:30 PM   #39
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Truth be know easy credit is what got us in this economic mess, I am not a big be leaver in credit I have made my share of credit mistakes. I'm going the route of sucking it up livening simple and saving serious cash to make my dream come true.
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Old 08-13-2013, 07:36 AM   #40
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Truth be know easy credit is what got us in this economic mess, I am not a big be leaver in credit I have made my share of credit mistakes. I'm going the route of sucking it up livening simple and saving serious cash to make my dream come true.
what mess is that? Thats like blaming reese & M&Ms for putting candy near a cash register. Unless someone has removed your free will... messes start at home.
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Old 08-13-2013, 07:38 AM   #41
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The mess was easy money and bad loans.
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Old 08-13-2013, 08:00 AM   #42
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what mess is that? Thats like blaming reese & M&Ms for putting candy near a cash register. Unless someone has removed your free will... messes start at home.
I suppose in some small way we are all responsible for the financial collapse by way of ballot or through support of special interest groups that greased the wheels of loose lending. That said many who did not take advantage of the system, did not borrow beyond their means, did not take out "liar loans", and did not walk away from their obligations have suffered and are still suffering from the "mess" that was made.

As for the Reeses Pieces and M&Ms, it is more like your neighbor ate them and you gained the weight and contracted diabetes. At least that's my HO of it.
Steve
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