When you default on an RV loan, your lender will repossess the vehicle and your credit score may plummet after the repossession is reported to the credit bureaus. The lender will also likely file suit against you in civil court for defaulting on the loan.
The law allows the lender to take possession of the RV after you stop making payments. A tow truck driver trained in vehicle repossessions will be sent out to take away the vehicle.
The tow truck driver can take the RV without consulting with you, but cannot break into a locked garage or violate any other laws during the repossession.
Sale of the RV
The lender will attempt to sell the RV on the open market or at an auction. The lender will keep the cash from the proceeds, and you will still be responsible for any remaining loan balance, as well as additional fees related to the repossession.
The lender will likely sue you in civil court for the remaining balance unless you are able to reach an agreement to settle the debt.
Judgments and Garnishments
The lender could win a judgment against you in court and attempt to garnish your wages or freeze your bank accounts until the delinquent debt is paid.