Legal Question in Real Estate Law in California

Re: repossesion

You can call them and discuss a voluntary surrender of the trailer, however, that does not protect you from a deficiency judgment. The lender will wholesale the trailer to attempt to recover some of what you owe them. The balance (difference between what you owe and what they recover) is a deficiency, and they will almost certainly come after you for that once the trailer has been sold. If at all possible, you would be better off selling it - some RV lenders are now actually negotiating short sales where they will accept less than is owed to let you sell the trailer, but again, they will probably condition that on the continued ability to recover the deficiency. The deficiency, however, in a short sale is likely to be less than in a repossession & wholesale situation, as the wholesale market is flooded with these, and the bank will literally dump your trailer for nothing, leaving you holding much of the original debt.

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