• Nebraska residents may face repossession if they default on their travel trailer loan.lake mead national recreation area 14 image by Jim Parkin from Fotolia.com
  
  Nebraska residents might purchase a travel trailer with a personal property loan.Travel trailers that are purchased in this manner are secured by collateral, which is the travel trailer itself. A travel trailer is a portable structure that is mounted on wheels and constructed on a vehicle chassis. Travel trailers are designed to be a temporary living area and are commonly used for traveling, camping and hunting. Travel trailer owners may face repossession if they default on their loan.
  
  

Default

• Travel trailer owners who default on their loan may face repossession. Lenders outline what they consider to be a default in the original loan documents. Nebraska travel trailer owners who fail to comply with the terms of the loan documents may be in default of the loan. This may include making late payments or failing to make the required payments on the travel trailer. Lenders may repossess a debtor's property if they violate the terms of the written agreement without prior notice unless otherwise stated in the loan documents.
  
  

Seizing The Vehicle

• Lenders may hire a repossession agent to seize the travel trailer. Nebraska law requires the repossession agents to seize the travel trailer in a peaceful manner. Agents may not threaten, use physical force or harass the debtor in order to seize the property. Travel trailers parked in a public area or parking lot may be seized. Agents may not however, enter a locked gated or secure garage in order to seize the travel trailer, as this is breaching the peace. Nebraska law requires debtors to make the collateral that is being repossessed readily available to the lender as outlined in the original loan documents.
  
  

Right To Redeem

• Travel trailer owners have the right to redeem the vehicle, once it has been repossessed. Redemption must take place prior to the lender selling the travel trailer. Debtors who intend to redeem the repossessed item must pay the entire loan amount in full, including storage fees, repossession fees and sale arrangement fees. Debtors are also liable for the lenders' legal fees as long as they are reasonable.
  
  

Deficiency

• Travel trailer owners are liable for any deficiencies that remain on the loan after the sale of the vehicle. A deficiency is created on the account if the travel trailer sells for less money than is owed on the loan. Sale proceeds are first applied to the costs of repossession and legal fees. Remaining funds will be applied to the balance of the loan.