A mobile foreclosure is different from a foreclosure of a traditional home. Lenders want to avoid foreclosing on mobile homes if at all possible since they will have to not only sell the property but also move it from its current location, which can make the process even more costly.
In addition, mobile homes depreciate and lose value over time instead of gaining like other property. If the lender forecloses on a mobile home, they will end up losing money on the deal so they want to avoid that.
Lenders have to spend a lot of money to foreclose on traditional property and even more when the property is a mobile home since they cannot sell it for what it is worth. A mobile foreclosure is often handled like how you would sell a used car. The only option the lender has is to sell the mobile home for whatever they can get for it.
When lenders foreclose on traditional homes, they usually recoup their loses with the sale of the home. The same is not true for mobile homes so mobile home foreclosures are something that lenders want to avoid if at all possible.
Facing a mobile home foreclosure
You need to face the issue of mobile home foreclosure head on and deal with it directly. There are some things you need to think about if mobile foreclosure is in your future.
- Can you move somewhere else if they take your mobile home?
- Is the mobile home worth more than you owe?
- How will you handle the hit to your credit score that mobile home foreclosure will cause?
- Will you be able to find a place to rent for what you can afford to pay per month?
One thing to consider is that if you pay less for your mortgage monthly than you could pay in the area for rent on an apartment or other mobile home, it is worth the effort to do whatever necessary to avoid mobile foreclosure as it is for immovable property foreclosure.
Working towards preventing mobile foreclosure
There are a lot of people in financial trouble due to the downturn of the economy and high unemployment levels. If you know you are going to be missing a payment on your mobile home, you should call your lender and let them know what is going on. The sooner you talk to them about your situation, the more likely they are going to be to help you.
You may be able to get your lender to work with you to avoid mobile foreclosure by paying only interest for a year or so which would lower your payments until your financial situation improved. This will mean your principal will not go down during this time but you can avoid mobile home foreclosure and get in a better financial
You should consider taking on a second job or finding another source of income if possible to avoid mobile foreclosure. In these times, a lot of people are getting a second job to bring in some extra money. You should also look at your spending and see what you can cut out of your budget.
The most important thing to pay is your mortgage on your mobile home. Until you get out of your bad financial situation, you should cut all unnecessary spending and stop using credit cards. The more debt you can pay off, the better off you will be. In addition, you do not want more debt adding up during this time. You can avoid mobile foreclosure if you talk to your lender and let them know what is going on.