Banks May Not Finance Full Timers

[radams]

Come on guys, let's get back to the subject. I don't believe this is going to be a long term problem. Number one, everybody has an domicile state and thus an address. Figuring out what the taxes and insurance costs will be is not difficult. Secondly, banks and mortgage company's escrow those items now for stick homes so it is nothing new for them. Thirdly, if there is profit to be made on these loans, and there is, then someone will want that business.

This is a tempest in a teapot right now because it's something new and different and we're just going to have to wait for more details. Trust me, the sun will come up tomorrow!

[Kountry87Air]

Originally Posted by traveler of california

Wow! A 30 year government bureaucrat defending the govt - what a surprise.

For the truth read the Community Reinvestment Act, or better yet, read Thomas Sowell's book "The Housing Boom and Bust" and get a real idea of what happened.

Nick

Just FYI on Mr. Sowell.


Senior Fellow, Hoover Institution, Stanford University, September 1980–present
Professor of Economics, UCLA, July 1974–June 1980
Visiting Professor of Economics, Amherst College, September–December 1977
Fellow, Hoover Institution, Stanford University, April–August 1977
Fellow, Center for Advanced Study in the Behavioral Sciences, July 1976–March 1977
Project Director, The Urban Institute, August 1972–July 1974
Associate Professor of Economics, UCLA, September 1970–June 1972
Associate Professor of Economics, Brandeis University, September 1969–June 1970
Assistant Professor of Economics, Cornell University, September 1965–June 1969
Economic Analyst, American Telephone & Telegraph Co., June 1964–August 1965
Lecturer in Economics, Howard University, September 1963–June 1964
Instructor in Economics, Douglass College, Rutgers University, September 1962–June 1963
Labor Economist, U.S. Department of Labor, June 1961–August 1962

[Gary RVRoamer]

OK, folks, let us not stray off into the political arena here. We all have our opinions about who is the blame, where things went wrong and what to do about it, but this is not the venue to debate it. Let's just stick to the facts of the regulations and how it impacts RVing.

[Mattpro]

Regulations are the political arena

[Gary RVRoamer]

We can discuss regulations and how they affect us RVers all day long. It's the "whose to blame" debate that we want to avoid.

[shadrack]

What a surprise my DW and I had yesterday at Lazy Days after looking at a new American Tradition and thinking about buying it. In the reps office, when we said we have been fulltiming for nine years, he asked if we had arranged our own financing. We said no and he then said that there are no banks doing financing since last month. One credit union may take our loan app. But no guarantee. What a bunch of BS because our illustrious reps in DC come up with s**t like this. It's no wonder that the majority of people in this country think we are going straight down the tubes. We get what we pay for and since big business and the unions have deeper pockets than us commoners, we lose. Any stats on how far down the RV sales have gone in the past six weeks? They have to have gone straight down in the medium to high end coaches. Golly, I hate to rant, but enough is almost enough.

[Renipladlo]

All - RV Sales are up according to the RVIA (Don't trust them) and the FMCA org.
Bank will finance if:
1. You have a real address with veriable assets, even blank land is an asset.
2. You are and have a real state of residence, not South Dakota to save the taxes, but a real state of residence.
3. Don't expect a Dealer to do anything for you, you will have to do it yourself, the profit margins are so tight, it costs them money to take the time to get financing, do yourself a favor, get pre-approved.
The key to success is Numbers 1 & 2. So if you sold everything to go fulltiming, you have no assets which the bank can check. That is why you were told that.

[shadrack]

I may need correcting, but most people think that if you own a foundation home or related property, you are not a person that is a "Fulltimer". Our definition is someone who has sold their stationary residence and moved, fulltime, into their mobile residence. And we are the people that our wonderful representatives in Congress have screwed completely. I reiterate, our representatives are the best that money can buy. And the hell with the common man who worked all his or her life to get to where we are now. Unless things really change, people 40 or so and under will never have the fun and enjoyment we are having. We just will have to put up with what we are now in.

[mikron]

My son inlaw had financing for a 35 foot 5th wheeler until they asked if he was living in or using full time. He answered yes and they would not finance.

[Bugzme]

Your vote on political issues is very important!! Make sure you vote!!

[paz]

FWIW, the Essex Credit web site still says they finance full-timers.

[Dave Rickey]

Originally Posted by Olive

As part of our wonderful new healthcare law, beginning Oct 1 any bank loaning money to a full time RVer must collect a year of property tax and sales tax up front and escrow it. There may be something else in there also. Greg Gerber had it on his report yesterday. Many banks are choosing not to lend to a fulltimer instead of going through all of the hoops. What property tax would we pay and whom to is the question.

It has nothing to do with the health care law. There was a separate piece of legislation that outlawed a bunch of things that the banks were doing to rig the game in their favor, like writing the contracts so they were under the jurisdiction of the most favorable (to them) state, usually South Dakota.

Just as the health insurance companies are jacking up their rates to gouge all they can before the law forces them to stop, and blaming the law, the banks are blaming the law for not letting them engage in usury, "and that's why you can't get a loan".

--Dave

[Lorna]

I'm sure glad that we pay cash for everything and do not need to borrow $$ from a bank or loan company.

[Dave Rickey]

I checked into this with a friend who works in financing, and found out the real reason they won't finance full-timers anymore: Some states allow you to "Homestead" an RV just like you would a house (because you live in it) which protects it in bankruptcy, and don't allow it to be foreclosed (because it isn't real estate), creating a loophole whereby someone who lives in their RV full-time can buy it on financing, move it to one of those states, then declare bankruptcy and walk away with a free RV. They didn't care before because they wrote the contract so the applicable law was for a state that didn't have the loophole. Now that they can't cherry-pick their jurisdiction, the loophole is open.

So, yes, full-timers did wind up getting caught up in this, but not because the government was trying to screw them. Theoretically this could apply to trailer homes as well, but it's much harder to move those long distances to a more favorable jurisdiction.

--Dave