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.

If the loan is for a Mobile Home and you don't own the property, than it is a Personal Property Loan. Basic like a car loan, they will repossess the mobile home and sell it at public auction. Hope this will answer your question.

The home will be sold at auction and you will be sued for the deficiency. Stopping foreclosure is most commonly done with a bankruptcy that allows you to cure back payments. The same is true with a mobile home even though it is not a foreclosure but a repossession.

It basically works the same way regardless of which method it falls under.

They take over ownership of the home. They will then add fees for doing this. They may or may not have someone come in to clean, do repairs and the such. They will add fees for this also.

They will hire a sales or auction company to advertise and sell the home
(for a fee) This company may or may not be connected with the company owning the mortgage. Often larger companies have many companies legal, sales and the such all under a mother company.

After the home is sold, you will the balance of the debt. Often this can be almost as much as you owe right now.

let us say that the home currently has a 20K loan, the fees for all the added service though selling are 8K, and the home sells for 10 K at the sale.

And this is if they are lucky. I bought a house, not mobile home for 5K at sale ( it was valued at 15K)

The current home I am living in was a bankruptcy sell, value about 120 K I got it for 60 K.

so do'n't expect a mobile home sitting in a rental lot to bring much money. Most mobile home companies will have to move it, and other buyers will want to rent in that lot.

You may wish to try one more time to settle something with the loan company.

I just received a call from the company that financed my mobile home that was repossessed a year ago. They want to offer a settlement to take this bad debt off my credit report. I bought the mobile home with my ex husband in 1994 and lived in it with him for 3 years before we divorced. I left the mobile home with my landlord, with the agreement that he would rent it out and make the payments. This all fell through and the finance company repossessed the trailer. I thought this was the end of it. Now, the finance company is in possession of the mobile home and wants to settle with me for $15,000.00, the balance on the loan is about $23,000.00. They say if I don't settle, they will take me to court, put a lien on my property, garnish my wages... etc. My current husband doesn't want to give them a dime and my ex husband doesn't even pay court ordered child support so I don't think he will pay any portion of this. Can this mortgage company put liens on my current property that my husband and I own together, can they garnish my wages?

If your name is on the title or deed of the property yes they can put a lien on it, but don't expect them to do this first, since the lien they put on does not help them unless you sell your property.

What they will do first ( my opinion anyway) is to garnish your wages ( about 25 percent of your pay) and then also try and attach any bank account in your name or with your name on it.

And yes expect them to do this. If your ex was on it, and you have to pay, you can also try to sue him for the amount of his part,

As for the child support, why not get the court to garnish it from his wages if he is not paying, or put him in jail if he does not pay.

I don't think they could garnish your wages. They do that only for taxes not for personal property loans. Please elaborate with some evidence if I am wrong. A repossession is a repossession. You can have that debt on your credit report for up to 10 years then it drops off if unpaid.