| Making the Most of Foreclosed Trailers | | | | If the borrower is unable to negotiate with the lender |
| In recent years, it has become increasingly easier to | | | | and does not want to file bankruptcy, then foreclosure |
| find foreclosed trailers due to the economic challenges | | | | is the likely result. Though unfortunate for the borrower, |
| facing our country. Trailer foreclosures occur when the | | | | a foreclosed trailer can be a great deal if you are in |
| borrower falls behind on payments. When this | | | | the market for a new trailer. All new trailers depreciate |
| happens, the bank then determines whether or not the | | | | as soon as they leave the lot, so there is already a |
| borrower will be able to continue making payments; if | | | | 30% discount when you purchase a used trailer, even |
| not, then the bank begins the foreclosure process. | | | | if it is only a few months old. In addition, when a trailer |
| Before foreclosure is complete, the borrower can still | | | | has been foreclosed on and then repossessed by the |
| redeem the trailer by paying back the loan amount in | | | | bank, the bank then needs to get rid of it as quickly as |
| full. Once foreclosure is complete, however, the | | | | possible. This is because the trailer has become a |
| borrower no longer has any claim on the trailer, and | | | | financial and business liability for the bank. Because the |
| the bank takes full ownership. | | | | bank is not out to make a profit, they will sell it for well |
| Even when foreclosure seems imminent, the borrower | | | | below its value, just to ensure that it is sold. The bank |
| still has a few options. First of all, the borrower can try | | | | not only has to pay storage fees for the trailer, but the |
| to renegotiate with the lender for either a lower | | | | remaining loan amount on the trailer takes away from |
| interest rate or a lengthening of the loan repayment | | | | what the bank is able to loan out, thus reducing its |
| period, either of which will reduce the monthly payment | | | | money-earning ability. |
| amount. Another option is to try to negotiate a short | | | | To find foreclosed trailers, you can either go to a |
| sale. In this case, the lender would agree to have the | | | | dealer or go to a bank auction. You will get a better |
| trailer sold at a lower price and would thus take a loss | | | | deal at a bank auction, but will probably have to do a |
| on the trailer in order to recoup at least some of the | | | | little digging to find one. Either way, you will save |
| loan amount. Finally, as a last resort, the borrower | | | | significantly on a trailer in great condition by purchasing |
| could file for bankruptcy. | | | | a foreclosed trailer. |