We currently own a mobile home in a mobile home park in the state of Iowa. We have been trying to sell our home for close to a year now, with no luck. About four months ago, we decided to sell the home to the mobile home park the home is in, for significantly less than what we owe. We purchased another residence, which we have lived in for the past two months.

We've tried to negotiate payment with the mortgage company our loan is through so that we can sell the home, and then continue making payments until we can pay the home off in full this summer. After negotiating with the mortgage company for the past two months, they've rejected every offer we've made. As we cannot afford to continue paying the monthly mortgage, insurance, lot rent, and electrical bills there, we feel we don't have a lot of options other than to let the home go back.

What is the difference to me if I voluntarily allow the home to be repossessed, versus letting it go into foreclosure? I've been doing some reading, and I'm not sure that a mobile home qualifies for foreclosure if the loan is a personal property loan. After looking at the mortgage paperwork, I think our loan is an actual mortgage and not a personal property loan, but I'm not sure. Obviously, this is going to affect my credit either way. But what kind of financial arrangements can I make with the lender, and how far can they go in trying to get payment from me? Can the lender put a judgement against other property I own, including our new home? Or does the lender have to work with what I'm able to pay for getting the remaining amount of the loan after the home is sold?

Also, if the home does go into foreclosure or is repossessed, is the lender required to sell the home through a public auction as they would be with a house? If the lender does not do this, what kind of recourse would I have toward the lender?

I hope this question is understandable. This is my first time posting here, and I would really appreciate advice or opinions.