Mobile home foreclose?

I have a mobile home set up on a lot. The lot rent has gone up so high year after year. I am getting ready to let the bank foreclose on my mobile home. And try to get a regular house. The problem is I still owe twice as much on the mobile home than it is worth. I have had it for about seven years now and am paying $587 a month.


My question is what legal action will the back take against me, after they resell it for the difference? How should I go about telling them I am defaulting on the loan?


Thank you,

Mobile home foreclose?
I think it really depends.. i'd say that if your new house is also something your getting a loan on try and make sure that loan goes through first.


the bank will foreclose on the home and sue you for the remainder of what they do not get in the auction... so figure on paying about as much as you owe on it now (since you said you owe twice than what its worth)you might want to look into filing bankruptcy.. if i were you and were employed i'd see if my employer offers some sort of EAP program where you can get not only free mental health benefits as well as free legal advice.


good luck you to.. your not alone.
Reply:don't plan on buying a house too soon after this happens your credit will be down the drain. I would say try to refinance.
Reply:I think you should try to rent out the place before letting it get foreclosed on. I do cleanouts on foreclosed home, which mean I clean them up, get trash out, and other maintences on them. If you let your mobile home go back, it will look bad when getting a house. Also houses are more expensive when buying, especially if you live in certain areas. If you rented the mobile home out you could get $587 a month for it(if in good condition). In all honesty rent is usually $500 and up in most places. In most place the legal action is they try selling the home for more than what it is worth, but most of the time they won't even get what is owed on it, if that happens I think you are responsiable for the rest of the owed money, for example your payoff is 7,000 and the bank gets 1,000 you will be liable for $6000. Usually if this happens most file for bankrupcy. I think your best bet is to just stay there or rent it out.
Reply:They will obtain a deficit judgment. If you make application for another home the lender will need to qualify you with both payment and you will need to making enough verified income to qualify for both.The lender of the mobile can garnish wages, assets and even put a lien against any property that you own.


Why in the world would you let a foreclosure if you making enough money to afford a new one? It will wreck your credit for the next 10yrs and the financial consequences are huge as they will leverage everything they can to get the Money repaid. Just food for thought.
Reply:If you owe that much more than it is worth you can plan on paying any difference from what they can sell it for, Say if you owe 45,000 and it is only worth 35,000 and they can only sell it for 25,000 you will be stuck paying the 20,000 difference plus legal fees, You should consider moving your mobile home to a different location it would be cheaper than letting it go, But if you have already decided to let it go then go talk to the finance company and let them know your situation don't just let them find out, You might even try to sell it yourself.
Reply:Foreclosure of a mobile home is similar to that of a house. Either one will ruin your credit for some time to come especially for another home.





If you cannot afford the payment, go talk to the bank and see if you can offer to sign the property over to them and avoid the cost of liquidation for the bank.





In real estate there is a deed in lieu of foreclosure where you sign the property over to the bank and they forgive any deficiency, which is the balance left over after the sale. That may also apply in your state.





Check with an attorney. If you cannot afford one, check with your states legal aide department. They may be able to assist you.





Anything short of a deed in lieu action, the lender will get a judgment against you as part of the legal proceedings that will allow them to sell the mobile home. They can then attach your wages for the next 20 years if they so choose. It is better to try and work out a plan.





I hope this helps....

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