I live in NC and my mother financed my mobile home for me 13 years ago. We have rented it out for the last 8 years, but the renters took off 6 months ago and left the trailer in ruins - you can't even live in it now. If we let the bank have it back, we're okay with them repossessing it and marking her credit for it, but she is on disability and owns her own primary residence free & clear. After they repossess the trailer, with the new foreclosure laws by President Obama, can they put a lien on her home or garnish her SSI disability for the loss?

This is not a foreclosure and does not fall under any of those laws.

This is a repo, just like your car. And yes they will sell it and then she will owe the balance. They will get a judgement and be able to do anything allowed in her state.

Your best bet is to keep paying for it, fix it up and sell or rent it out again.