Many factors affect mobile home repossession and how the process works. One factor is what kind of loan was used to purchase the mobile home. It could be a personal loan or a traditional mortgage.
In most cases, a traditional mortgage is used to buy a mobile home that is going to be located on personal property and a personal loan is used to purchase a mobile home that is in a mobile home park where you pay rent for the lot.
A mobile home repossession works the same no matter what type of loan you used to purchase the mobile home and the process starts when you miss your payments. The difference is that once the foreclosure process has begun, a mobile home bought with a traditional mortgage will go through pre foreclosure and foreclosure while a mobile home bought with a personal loan will be repossessed just like a car would be if payments were not made.
How mobile home repossession works
Most states handle mobile home repossession the same way but you should talk to an attorney to get the details you need to know if you are in the position of losing your mobile home due to a mobile foreclosure. Here is some basic information about mobile home repossession:
- When your mobile home repossession is complete, the lender will usually auction off the mobile home at a public auction. If the mobile home does not sell for what you owe on it, you are usually required to pay the difference to the lender. You will also have to pay the fees and other costs associated with the mobile home repossession.
- Any cleaning required, repairs made to the mobile home, and any auction fees will be passed on to you and you will have to pay them to the lender because of the mobile home repossession laws.
- If you file for bankruptcy, you may be able to prevent mobile home repossession from happening to you. You can sometimes work out a payment plan through bankruptcy that lets you keep the mobile home and lowers your payments significantly.
- If you go through mobile home repossession and your home sells at auction for less than you owe, the difference will have to be paid by you and not doing so will possibly result in a garnishment being filed on your wages. Anybody listed on the title can have up to a quarter their salary garnished even if they were not currently residing in the mobile home.
- As soon as a mobile home repossession is underway, the property owner, if the mobile home is in a mobile home park, is going to insist that the mobile home be moved so they can get a mobile home in that will bring in money. If the mobile home needs to be moved, the homeowner will have to pay the lender back for any moving expenses incurred.
What to do if you are facing mobile home foreclosure?
If you are facing mobile home repossession, you can try to sell the home but you may find it hard to get what it is worth since they tend to lose value over time. You may be able to sell it for less than it is worth and have a smaller black mark on your credit than if you went through mobile home repossession.