RV Wheelator® is only firm in North America that is successfully negotiating short sales for owners who are in upside-down positions on their RV loans.
When listing an RV, the seller indicates what he owes on the unit, if anything, and what he feels it is worth.
Then this company’s crew goes to work to determine how much banks are willing to loan for that specific unit, and compares it to the comparable price RV dealers are listing that same unit.
If the owner owes more than the RV is worth, RV Wheelator® contacts the lender on the seller’s behalf.
“We tell the lender that a customer of ours is upside down on an RV loan, but we are approaching the lender with a solution. More often than not, the lenders are grateful for this proposal and they accept it.”
For example, if an RV is worth $53,000, but the owner still owes $60,000 on the loan, this company closes the gap by arranging for a personal loan.
“We remind the bank that since their customer was credit worthy for a $60,000 loan that is technically secured by an RV really worth $53,000, surely the customer would be credit worthy for an unsecured $7,000 loan. When we find a buyer who is ready to purchase the RV, the current owner triggers the $7,000 note.
“It is not reducing the borrower’s debt, and the bank is not out any money. However, everyone walks away from the transaction with a great deal.”
It is a quadruple win for everyone, including:
The buyer who gets a clean title to the RV with equity because he bought it at a price below the average retail rate for that unit.
The seller unloads the upside-down loan and can quickly pay off the remaining $7,000 at a rate much lower than credit card interest.
The bank does not have to repossess the RV and try to sell it at a wholesale rate. They get all their money back plus interest on the personal loan.
This company collects a small commission on the transaction, which is factored into the sale price and paid by the buyer. The commission, which is 5 percent, covers all the costs, including advertising.