My corporation, a Georgia corporation, is the Holder of a Promissory Note, which Note is currently in default, as defined by the provisions of such Note. As collateral for the Note, Borrower originally granted Holder a security interest in the underlying asset being purchased by Borrower with the borrowed funds, a manufactured (mobile) home, which serves as Borrower’s residence and which is located in the state of Virginia. It is my understanding that such security interest has been “perfected” through proper recording by the Clerk of Court in the appropriate municipality in Virginia. The event of default has been discussed orally with Borrower on numerous occasions. Oral warnings of the Note being “called” immediately due and payable and repossession of the underlying collateral have been issued. Borrower has responded in one instance with partial payment and promised to “catch up on the payments in arrears” within a short period, which has never come to fruition. The principal balance currently outstanding under the Note is less than $20,000. This is the only asset of any substance and worth that Borrower possesses. Holder, to the best of Holder’s knowledge and belief, is the only secured party with respect to this collateral.

It is my understanding that Virginia a) adopts “generally” the provisions of the Uniform Commercial Code in secured transactions and b) treats manufactured (mobile) homes in the same manner as automobiles regarding notices of default and repossession or recovery of collateral (i.e. neither written nor oral notice is not required for an event of default, where “default” is defined in the underlying debt instrument, or for repossession or recovery of collateral upon the default of debtor).

My questions are as follows:

1. Are the “understandings” of Virginia law that are set forth in the foregoing correct?
2. Is any property or assets contained in or “attached” to the collateral at the time of repossession or recovery subject to repossession or recovery (i.e. “fair game”) without recourse? A few examples of such property or assets would be the air conditioning system, including the exchange unit located outside of but attached to the manufactured (mobile) home; the wooden porch and deck, including the access steps; the above-ground propane tank; the underpinning; the awning/overhang; and, furniture, fixtures or other personal property and belongings remaining inside of the manufactured (mobile) home at the time of repossession or recovery.
3. Are costs associated with disposition of the collateral recoverable with respect to any remaining deficiency by the Borrower after collateral disposition?
4. Is there any unique or special form that should be utilized in providing an account of any remaining deficiency by the Borrower after collateral disposition?
5. Are there any restrictions on the manner in which the collateral is repossessed or recovered?
6. For “simplicity” or otherwise, should written notice of intent to repossess and recover collateral be furnished to Borrower and in advance, based on some reasonable amount of time, say fifteen (15) days? If so, should it be delivered by regular mail; certified mail, return receipt requested; or, some other form of service?

The answers to these questions and any other advice or observations would be greatly appreciated.

Thank you.

1. While I am not in VA, it does seem correct as to my understanding,

In common practice, your vebal notices are not legal and will not hold up as any legal notice.

2. personal property inside is not attacked, since it is not considered real property even though it may be attacked to the ground. But also since it is not, those items attached to it, deck air ( unless air was included in the original purhace which it is normally in new homes) So you need to have or know the exact bill of sale and items included in the original purchase.
If the couch, beds and furniture was included in purchase, it would be part of the property)

Yes all costs are recoverabel that is left in any remaining balance after disposition of property

5. You need to check with a local firm doing this, ( since you would need to hire them to do it anyway. Or with a local attorney. Local here in TN, they either pad lock the doors or send a trailer moving company out to pick it up.

6. Since it is not likely they will move it out in the middleof the night, I would give them additional written notice to try and simplify things

But best advice, hire a local VA attorney perhaps recommended by a trailer company in VA