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Mobile home foreclosures or repossession - What next?

Posted on: 02nd Jan, 2006 02:11 am
My investor who wants to repossess my home is constantly harassing me. But I am still current on my mortgage payments. If we don't pay an insurance payment and miss any property tax, they say that they will be taking our home. I am currently staying in a mobile home park. Can you tell me, if I apply to HUD will they help us pay off the loan and move into some other place?
Hi Maria,

If you are making your mortgage payments in time, then I don't find any reason as to why your investor wants to repossess your home. But in case you need to pay the insurance payment and property taxes, you should pay them in time so that you will not lose your home.

Regarding the HUD assistance, you should contact local lenders and enquire about the Title 1 program offered by the HUD. Under this program, loans up to $64, 800 are available for the combined cost of a lot and a mobile home.

Posted on: 02nd Jan, 2006 02:38 am
I got my answer but pls let me know more about the title 1 program.
Posted on: 02nd Jan, 2006 03:10 am
Hi Maria,

The Title 1 program allows you to take mortgages from approved lenders as a financing option for purchasing and/or lot. This can be done by taking out mobile home loans. The FHA insures the lender against financial loss if the borrower defaults. Credit under this program is offered on the basis of the applicant's credit history and his ability to repay the loan in regular monthly installments. The loan is also issued for refinancing the mobile home loan provided the mobile home is used as the principal residence of the borrower.

These loans are not government loans or grants, and these are not available at low rates. The interest rate for this kind of loan is fixed and depends upon the market rate prevailing in the area where your property is located, that too at the time when your loan is being made.

Hope this information will help you.

Posted on: 02nd Jan, 2006 03:45 am
My mother-in-law has a mobile home in Texas and a house in New Hampshire. Her husband passed away this last year and she can no longer afford the payments. She owes way more than the mobile home is worth. If she allows the mobile home to be repossessed what happens?

Can they put a lien on her other house? What if she sells that house first can they go after the proceeds? Can they go after her SS money or her pension? If she has gifted money to anyone in the last year can they go after that person?

She does not care about her credit but she does need her retirement to survive.

Posted on: 16th Jan, 2007 12:00 pm

In case of mobile home foreclosures or repossession, the creditor will take it away and sell it in an auction. If the sale proceeds are less than what was owed then there are chances that lender will also sue for a deficiency judgment to recover the balance amount.
Posted on: 16th Jan, 2007 12:50 pm
"If she has gifted money to anyone in the last year can they go after that person?"
For a deficiency judgment recovery they can not ask for money from a person your mother-in-law may have gifted anything last year. But can put a lien on the other house for the recovery of the balance dues.

Henrietta Cole
Posted on: 16th Jan, 2007 01:12 pm
Hi Mary,

Welcome to the forum.

Once the mobile home is repossessed, the lender may ask for the deficiency or the difference between money he should get back and the sale proceeds on the mobile home. If your mother-in-law is unable to pay the deficiency, the lender can sue you for the deficiency judgment given by the court.

But even if she is unable to pay for the deficiency, I don't think the lender can put a lien on her other house. He can only do so if the other house is also kept as security along with the mobile home.

The lender cannot go after the sale proceeds of the first home. Neither can he go after the person to whom your mother-in-law has offered a gift. The lender will possibly not go after her social security income and pension plan accounts. Instead, the lender may sell the mobile home and get back the amount he has offered as loan.

Hope you will be benefitted from this information.

God bless you.

Posted on: 17th Jan, 2007 01:45 am
Because I did not have a job, I fell way behind (3 months) on my mobile home mortgage. Now they are telling me that they will repossess today or tomorrow. However, now I have a job (starts today actually) and I figure I should be able to work out an arrangement to stay in my home. But the lender won't compromise. I have nowhere to go; no friends, no family available to take me in. Social Services cannot help because I have a dog. I gather that I have no rights and can be kicked out whenever the Sheriff's Department has the time to do so?
Posted on: 06th Aug, 2007 11:31 am
Hi Gracelle,

Manufactured or mobile homes do not include any foreclosure protections like real property home mortgages. When borrowers default on such loans, the home can be repossessed by the lender and sell it at public auction.

What you can do is to talk with your lender and try to negotiate with him to give you some more time to pay off the loan. You can go for a written agreement stating that you'll be paying off the loan within a month or so. I hope he'll surely consider your request.
Posted on: 07th Aug, 2007 05:53 am
I am in a intrest only loan i have paid for 7 years and my pricipal never went down I did not know about this. and i am having a hard time refinancing what do i do???
Posted on: 15th Nov, 2007 11:44 pm
hello marco,

how long is the interest only period for the mortgage? is it 10 years?

don't you have any equity in your home?

have you spoken to your lender? what problem are you having?

i think you should be able to refinance. you may have to shop for some time for lenders.

there is another option. you may refinance with a 125% equity home loan or a no-equity loan, if your credit is good. with such a loan you may borrow up to 125% of your home's value.
Posted on: 16th Nov, 2007 05:04 am
If I let my mobile home repo do you know what all can happen. My land is not with it
Posted on: 12th Dec, 2007 07:30 am
Welcome Mac,

In case of mobile home repossession, the property will be sold off at a public auction to recover the amount of debt you haven't paid off. But hey, why do you say so, is your mobile home being repossessed? Aren't you able to gather the funds? Please let me know in details so that I can give you the right suggestions.
Posted on: 12th Dec, 2007 10:08 pm
I signed for a mobile home for my son 8 yrs ago. He now can't make the payments and I am now retired on a fixed income. He is in FL (in a trailer lot) and I am in SC. Remaining on loan is $37K and of course it is more than the home is worth. My credit rating is important to me but I cannot keep this loan current for my son now. Please give me some options for my situation. I tried For Sale but only can get $5K or so for it and I have rejected that offer. The payments are $587 for loan and $300 for lot rent. Almost my whole Social Security check.
Posted on: 26th Mar, 2008 10:33 am
Hi Margie,

There are actually quite a few options available for you. Like - you can ask your son to help you in making the mortgage payment. If it is not possible then you can think about refinancing and change the rate-terms if possible. Even if it is not possible then go for short sale and pay off the lender.

Feel free to ask if you have any further questions.

Best of luck,
Posted on: 26th Mar, 2008 04:21 pm
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