I co-signed for someone to purchase a MH. Long story short-The lending company (Green Tree) called me. The person in the MH is 3 months behind and they wanted me to pay the amount. I told them(GreenTree) that if the payments aren't being payed then go get the MH. The rep from Green Tree then told me that they would sue me for the remaining balance owed. Is repossession of a MH like the repossession of a automobile? Can this lending company sue me for the remaining balance that is owed? Please help.

excon

Hello sd:

Yup. Exactly like a car. They'll repossess it, sell it for whatever they can get (to their aunt?), and then sue you for the rest.

excon

PS> Co-signing = not good.

Fr_Chuck

Yes, exactly like the car.

If they repo the home, yes they will sell it and guess what, the repo costs and moving costs that is added in, and the low price that they sell the trailers for. You will owe more money after they sell the home than you do now, owning the home.

This is the issue with co-signing, if the other person does not pay, they can come after you first or together with the other person,

So yes, you had better find out why the other person is not paying, pay the back payments and work out a deal withthem to sell the home yourself, or something

andrewcocke

Yup yup... thats what will happen.
Better hope they didnt trash the place.

Is the mobile home and land it sits on collateral for the loan? If so then they could be foreclosed on together, thus making is possible for you to come out of this not oweing anything, but I wouldnt get your hopes up on it, like chuck said mobile homes normally depreciate in value like a car, not quite as fast, but if its a single wide, you can almost count on it. Also bear in mind that moble homes tend to get trashed.

Lesson for the day, never co-sign for anything. They can find a co-signer somewhere else.

If there is not a lot owed on the trailer, and the note includes land, you may be able to flip it to an investor and avoid forclosure and marks on your credit. A broker for a respected realty company told me that if you list your home (mobile homes included) after your delinquent then they will sit and wait for it to sell, then once it sells you pay them. And of course, those rules might vary by state.

But this will only work if you can get the amount out of it. Bear in mind, that a realtor will probobly get you a better price than a bank repo.
Its worth a shot. Realtors are not like lawyers, most seem eager to speak with you and explain your options at no cost, they make their money on commission.

Also keep in mind that the above idea will probobly only work if the note includes the land it sits on, if its on a trailer park or something, I doubt a realtor will touch it.