[Bailey'sMom]

HI all

Here's how it works in most states.....

1. He had a loan on the camper. That means the bank has a lien and if a title holding state, they also have the title. Title only goes back to owner when paid in full. Insurance company should be reporting it to state DMV that it is salvage. Once lien is released, state issues a new title to the owner. That title should say salvaged.

2. The loan has to get paid off regardless of how much the insurance company pays. Bank communicates with the insurance company re: amount owed etc. if amount paid by insurance company is not enough the borrower still has to pay the difference. Check will be payable to both bank and the borrower....both have to endorse it. Bank decides how it gets applied.

3. By default, bank will thus know that the insurance company is going to total the camper. They likely won't want to lend money on a camped that was totaled. If they will it would only be a fraction of the value before it was totalled.

4. The value of the camper is permanently devalued because it was deemed too damaged to be worth repair. Doesn't mean it doesn't have some value, or that it's not usable. Those are two different things.

5. To not retitle the camper as salvage would be at minimum deceptive and at worst fraudulent.

6. No lender and no insurer would knowingly lend or insure at full blue book value if they knew the camper was totalled by insurance company. What if there is another storm, say a wind storm and the camper Is demolished? Would you expect payment at full blue book? If lender had to repo it for non payment and they try to sell it, they won't get what they should because it would have existing damage.

7. If I were buying that trailer from you down the road and I think I'm getting a good price, but later find out it was salvaged and you didn't tell me, I would be pissed. Even if you fix things it's never as good as before, and thus not as valuable. Likewise, if you tell me upfront it's a salvage, but it only had XYZdamage, and I still buy it, then I am an informed buyer and can make an educated decision.

8. Lastly, just because you have a title sitting in your safe it doesn't mean that is the most current version. A lot has changed over the years with electronic lien release, auto issue of new title, etc.

How exactly it works depends on your state.

Ok off my soap box....