Repossessed Mobile Homes

The laws that govern the repossessed mobile homes are mostly the same across all the states in the US, except for a few specific changes. Once a loan, used to obtain a mobile home is defaulted on, there is repossession of that amenity. The steps that follow on default vary slightly in different states, but the crux of every deal where defaults occur remains the same. The first consideration is the nature of the deal, whether the possession was through a personal loan or through a mortgage loan. If a buyer happens to be the owner of the land on which the mobile home stands, then it is a mortgage holding. On the other hand, if the mobile home stands on a rented land, the mobile home loan is equivalent to a personal property loan.

Details of Repossessed Mobile Homes

In all matters involving legal liabilities, as in this case, it is always a good option to seek assistance from a legal expert before taking any decision. A list of commonly observed steps, usually followed in these situations are given below.

The process of repossession of a mobile home can be avoided by the loan borrower, by filing for bankruptcy. There is also a provision to retain the home, and pay significantly small installments, provided you are willing to do the same for a longer period of time.

In case, the mobile home is sold, the person or the authority who has brought the home, has a right to sell it in a public auction. But, the difference between the proceeds generated from the sale, and the loan amount, must be paid by the borrower. At the same time, the legal and the repossessing charges, too, is a liability of the loan borrower. Similarly, all the costs incurred for the auction process (for eg. if a professional auctioning agency is hired for the same), repairing and all renovation work, if undertaken by the lender, have to be paid by the defaulter. This is again considered as apart of the deficit payment.

If you are the owner of a mobile home through repossession, and the home is on a rented piece of land, you have a right to shift the location. In this case, the land owner where the home stands may assist you in the process, as he may not be receiving the rent for the land from the defaulter. For such a removal or shifting charge, the charges are again a responsibility of the defaulting party.

Even in case of non-payment of the charges, there are certain provisions for the lender to recover the money, albeit very slowly in stages. For example, the law guarantees payment for the lender, if the repossessed mobile home is sold through an auction and the deficit amount is not paid by the concerned borrower. Accordingly, about 25% of the pay of a defaulter can be availed by the lender, for failure to pay the balance amount. The provision also makes it absolutely clear that this payment will be borne by the person who is on legal records as the defaulting owner of the repossessed mobile home. Even if the person who lived in the place at the time of repossession ,is not the same as the title holder, it is not his or her responsibility to make amends for the default.

Thus, selling mobile homes appears to be a better option, even though the resale amount is pretty less than their actual value. It would at least prevent a bad credit record.