What Is a RV Short Sale?

An RV short sale reduces your debt.

If you have an RV listed for short sale, it usually sells at a lower price. A short sale occurs because you are facing financial difficulties and can't afford to make regular payments toward your RV loan. Selling the RV as soon as possible reduces your debt and minimizes your lender's losses.


Failure to Make Loan Payments

If you go through a financial hardship and have a loan on your RV, you may find that you can no longer afford to make your regular payments. If the situation continues, the lender may consider you to have defaulted on the loan, repossess the RV and sell it to minimize losses. This scenario hurts your credit score, making it difficult for you to obtain loans in the future. A short sale minimizes the effect of your financial problems on your credit score.


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If you think you can't make your loan payment, contacting your lender immediately provides you with more options. Your lender may give you the options of short sale, loan modification or other ways to salvage your credit score. In a short sale, the lender agrees to sell the RV and use the sale proceeds to pay for the loan. Even if the sale price is below the outstanding amount, the lender will not demand that you repay the balance.



If you can't make your loan payments, the lender usually gives you a deadline by which you must make contact if you don't want to face repossession. Beyond this deadline, the lender may claim your RV and your credit score may drop. You need to talk to your lender to explain your situation and provide supporting documents, such as pay stubs. Once the lender agrees to a short sale, you no longer need to make regular payments toward the loan.


Selling Price

An RV short sale aims to quickly turn the RV into cash to pay off the loan, so you may have to sell it below market price. Depending on your particular situation, the Internal Revenue Service may consider your RV to be your home. If so, you can get tax deductions on the loan interest on your federal tax return. Before selling the RV, talking to a tax professional helps you determine the tax effects of a short sale.