I lease the land that occupies my 2004 Fleetwood Mobile Home. I recently learned that the Mobile Home Community Park Owner is selling the land/park to a Realestate Land Developer within the next 12 months.At that time, we'll need to evacuate the park and find another place to move our homes. It is very costly to move these homes and there are very few parks that can accommodate the homes. We are not getting any monies (except 3K - 10K only to move the home). We are fighting the sale but I know it is inevitable at this point. Therefore, I contacted my lender to check into my options. They informed me to find a buyer for the property, or wait to receive the park eviction notice so that the Bank can seize the property /initiate the Reposession Process and I would be charged for the excess.
The MH are not selling because many parks are closing. Knowing that I have an overall excellent credit history/rating, I am very concerned about how this repossession will appear on my credit. Since this is not the 'typical' repo (lack of payment - late payment, etc), does anyone know what type of recourse I have with the Lender in this type of situation?

Doesn't sound like you have a lot of recourse. Once the park is sold you have to move the home or allow the bank to repo it (big mistake). If they do repo it, the will sell it for whatever they can get and you will still own the balance. Meaning you will continue to pay for something you no longer own.

So you need to either sell the home yourself or find someplace to move it to.

The repo will destroy your credit, it is a repo does not really matter why.

What happens if you owe 30,000 on the home, they repo it, will change you the cost to move it , lets say 5000, plus repo fees and cost of the sale, lets add another 3000 for that. So now at the day of the sale, you owe 38,000. Now they will sale this at auction so you can expect it to sell for less than 1/2 of its value and most likely a lot more, my guess no more than 10,000 when it sells. But lets say 15,000 and be nice.

So now you don't have the mobile home, it is showing repo on your credit report, and you still owe the bank 23,000 for a home you don't own any longer.

So you need to see about perhaps buying some land to park your home, or find another park and move it.

I don't have an answer for you but I wanted you to know that we sympathize with you having just gone through the same thing. Except we were given only a 53 day notice with no money. We had no choice but to tell the bank to come get the home. My question that I wanted to post was if there is anyway the lender would legally let us out of the contract because we had no options. Since there were no other parks to put it in and land was not an option due to lack of credit! I hope that you get it all figured out and go through less stress than we did!:mad:

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Originally Posted by Sarahmarie693

I dont have an answer for you but I wanted you to know that we sympathize with you having just gone through the same thing. Except we were given only a 53 day notice with no money. We had no choice but to tell the bank to come get the home. My question that I wanted to post was if there is anyway the lender would legally let us out of the contract due to the fact that we had no options. Since there were no other parks to put it in and land was not an option due to lack of credit! I hope that you get it all figured out and go through less stress than we did!:mad:

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The lender can do whatever they want about forgiving all or part of the debt. There is nothing legal to stop them. The likelihood of that happening, however, is very small.

May be this is off the wall, but I know that there are people in our real estate investment group that buy mobile homes exclusively. That means there are people in your area that do the same. Is it possible to take pictures of your mobile home and put it on EBay? I know you can set a minimum bid, so what would you have to loose?

That's great and I appreciate it I will look into that. What happens if I sell it on eBay or somewhere else and it doesn't get me enough to pay off the home the lender won't let us let the other party have it without the whole payoff right?

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Originally Posted by Sarahmarie693

Thats great and I appreciate it I will look into that. What happens if I sell it on ebay or somewhere else and it doesnt get me enough to pay off the home the lender wont let us let the other party have it without the whole payoff right?

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You need to set a minimum bid, so that it is not sold for less than you own. Call the bank and find out what the pay off amount is. Figure additional expenses.

The problem is that mobile homes decrease in value at such a huge rate! So we owe way more on this mobile home than it is worth. This is the biggest mistake of my life purchasing this home, but I was 18 when I did it and I thought I was being wise in not renting a home but purchasing one. Since I was 18 the interest rate was high(not like I had any clue back then). So basically we have already paid for this house once. So I am going through all of this over unpaid INTEREST!! :mad: This is way more than I can deal with! I don't know how it is possible to get the what we owe them off the sale. We have asked them to settle for less since we have already paid so much for this home but they will not work with us at all! Thank you guys for all of your help! It is very much appreciated. I am at the point where I would like to pull my hair out of this! I see no way out of this. We also have a co-signer too so it is not just our credit and our lives on the line. The land owner wants the home off the land by 3/7/07 so we are very rapidly running out of time!

With ANY loan, you pay interest first since the higher principal balance means more of the payment goes towards interest. You can't look at it as if what you have paid covers the cost of the home, because the cost of borrowing is real. But if you have paid that much, then you should have some equity in the home. As long as you sell for more then the prinicpal balance of the loan you can be OK. But if you let it go for repo, then the lender will sell for whatever they can get and go after you for the balance.

I don't know what area you are in but there are investors in almost any area that could help you. They have creative ideas and help people in your type of situation for a living. Try searching for a local real estate investors club to see if you can post your MH online or contact the organizer to see if they can help locate someone that may be interested. GOOD LUCK!

Ashley
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