We have to move... but we have a mortgage on a trailer...?

Question

We're in Indiana. Have to get to KY by end of summer (where I'm from). But we have to get rid of this trailer the cheapest and easiest way possible.
He owes about $13,000 to the bank. That's because he had to get it refinanced... his ex wife was a b*tch. He had to get it reposesed and sold BACK to him in order for him to keep it because she wouldn't sign it over and had no way to pay. Before refinancing, it was sold to him for about $9000. He's paying way more that it's worth. He thinks it'll be worth about $8000 now since it was worth $9000 a year ago. My grandfather tells us we have about 3 options:
1. See if someone will take over payments ($250/month). (why would they do that since the payments total to over $13000!?
2. Rent it. (I don't know if we'd trust anyone to rent if we're 2 hours away).
3. Have it repossesed.
4. Sell it and pay remainder in our $250/mnth payments (would suck to pay that on top of new rent bill)
(cont)...

(oops, 4 options).
Anyways, we're leaning towards repossed because we think we can get payments lowered to something more reasonable to be paying on top of new rent bill. However, if the bank auctions it off for say $6000 we'll be paying $2000 more than just selling it and paying remainder... but we could get lower payments... unless we sold it and refinanced the rest to get low payments?
I really have no idea what to do on this one; all I know is that we need to be in KY by end of summer.

I wasn't even around when he decided to do all of this (my name isn't on anything)! I wouldn't buy a home until I'm out of college and have a good job for a few years. No criticisms please. I want us to get out of this mess, and I want him to learn from it.

Answer 1

You've pretty well laid out the options available to you, none of which are very attractive. The error was made because 'he' decided to refinance the trailer for $4000 more than it was worth. You got the benefit of the immediate money at that time, but now it's time to pay the piper. That's a decision with which you must now deal.

Your best option is to rent the place. Hire a rental management firm to handle the tenants in your absence. If you let it go to repossession, your chances of finding a place to rent (with a repo in your credit file) will be considerably lessened.

Answer 2

Don't let it be reposesed. He needs to pay the money he barrowed. If he intentionally does not then he is a deadbeat that has bad credit. This will cost him alot more over time than 13k. You could owner finance it to somebody. That will be the guy that let the last one get taken back.
There are alot of people in this country who are desparate to own a home any home. They have jobs and the means and will to pay for it but no credit or bad credit. Get a good down payment and save it incase you need to remodel it after a bad eviction. You can still turn a profit. Do buisness don't be a deadbeat.