repo

[cyndi]

probably a dumb question, but what the heck? we own a 1997 fleetwood mobile home and are renting a lot. we are looking at options as far as purchasing land and moving the mh, or selling it. unfortunately, we are upside down on the loan, and i know moving this thing is an expensive proposition. is a repo a credit disaster no matter what? is it possible to contact the lender and arrange a repo just to get out from under?

[rmurray]

A repo does NOT relieve you of your financial obligation to pay the money...If you give the home back..they will sell it to the highest bidder..credit your account for the money and then you will owe them the balance...

They will then have many avenues to collect the lost money..all of which can go on for many years to come...they can and probably will sue and get a judgement...in some states they can garnishee your wages..judgements are long term attachments on any and all your assets...for many years to come..in some states forever...they can sell your debt to a professional collection company..they will hound you for many years...they could give up and write off the debt to save on income taxes...BUT..when they do they have to send a 1009 income statement on you to the IRS and you will then owe income taxes..penalties and interest on the debt...the list of things they can and most likely do is long..

Before you consider this route..you should consult with an attorney who specializes in personal finance..Most likely he would recommend bankruptcy...at least the problem would go away...Either way..your credit will be shot for a number of years to come...remember..credit scores effect the cost and availability of future credit...but also car insurance..health insurance..even life insurance..maybe your ability to get certain jobs..federal security clearances..So be careful before you leap..

[cyndi]

Thanks so much for the information! I really appreciate your time.