Often in life, we get a curve thrown at us and the end result is possible repossession of our mobile home. It is important to understand how this works. First thing to understand, how did you finance the mobile home, was it a personal loan or an actual mortgage. Each one is handled differently than the other depending if you were renting a lot or you owned the lot where the mobile home is located.
The first type of loan is when you rent a lot, it is a personal property loan on the unit. The second type of loan is when you own the lot, it is a mortgage tied into the land the home is situated on. With both types of loan options, the mobile home repossession will follow the same basic steps once the loan payments get behind and go into default. The mortgage loan will require pre-foreclosure and foreclosure whereas a personal property loan can result in a mobile home repossession, It is the same as repossessing a car or personal property like a washing machine. There can be extenuating circumstances, it depends upon your state.
Repossession of a mobile home is standard for most states but needs to verified with an attorney before you do anything that can affect you legally. After you have checked with an attorney the following could happen and is good information to have.
1. When the mobile is repossessed, generally the lender will sell it at a public auction. Because you are the loan holder, you will have to make up the difference between the loan amount and the sales price. Often, you can be charged for the repossession fee and legal fees involved. Often the resale value is lower than the loan due to poor resale value of a mobile home. It is not easy to stop a repossession, but to have any chance of doing so, you must take immediate action by hiring an attorney.
2. You could also get hit for the costs of cleaning the unit, any repairs and costs of the auctioneer.
3. Filing for bankruptcy can sometimes help prevent the repossession if you are dealing with an experienced Bankruptcy Attorney who knows the law. You will still be required to pay for it but it could be dealt with like in a Chapter 13 Bankruptcy where you make scheduled payments dictated by the courts.
4. There are times when anyone with their name on the title could be ordered to pay for the deficiency. The lender could also garnish your wages. This is why you need to consult with an experienced attorney to help you out of the situation.
5. If it is located in a rental trailer park, the landlord can have the unit removed for failure to pay the lot fee. The person on the title is responsible for all moving fees.
In conclusion, whether you own the land or rent the lot, if you do not make payments, it will be repossessed. How it is handled should be in the hands of an experienced attorney. If you file bankruptcy, you could possibly keep the mobile home if the Bankruptcy is handled by an experienced attorney for this type of legal matter. It depends upon the laws in the State of residence governing mobile homes and repossessions. For further information about the your rights and about your state's specific repossession requirements, contact your state consumer protection agency or hire an attorney.
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