Finance and Credit Professional

Most lenders treated mobile homes much the same as vehicle sales and most did not qualify for traditional mortgages when they were first being sold. After all, a buyer who could not make their payments could hook them up to a truck and drive them away to avoid mobile home foreclosure. However, as more people began buying mobile homes and they became more a part of the landscape, lenders became more acceptable to providing financing and when a homeowner could not make their payments, mobile home foreclosure began as opposed to repossession as in auto loans.

Typically, the price of a mobile home is considerably less than a traditional home and during a mobile home foreclosure, the land on which it is located, is usually not included in the sale. This type of unique situation exists because the home can be bought and moved by a new owner and the land sold separately by the mortgage holder. Additionally, homes reclaimed during a mobile home foreclosure can be moved to a sales lot and sold as used and not necessarily by auction.

Loan Determines How Money Is Collected

Credit collection laws may vary slightly by state, but federal laws also govern the process of disposing of property confiscated in a mortgage foreclosure. With the homes being on wheels, moving them off the property may also reduce their value, especially if the new buyer is putting them into a mobile home community instead of on private land.

The mobile home foreclosure process will be similar to the foreclosure process of a traditional home, depending on the type of financing obtained by the original buyer. The lender has to go to the local court and show that the borrower has not fulfilled their financial obligation and the only way for the lender to be repaid is to have the court sell the property on their behalf. The mobile home is put on the auction block, once approved for sale and any money over what is owed on the home goes to the owner.

Despite being similar to repossession of a vehicle, if the home loan was granted in the form of a mortgage in partnership with the land on which it sits, the land and home may be sold together. However, in most instances of a mobile home foreclosure the land can be sold separately, unless it is a part of the original loan with the value of the land included in the collateral for the purchase of the mobile home.

As more people began buying mobile homes, lenders became more acceptable to providing financing and when a homeowner cannot make their payments, mobile home foreclosure begins...View more articles at www.foreclosures.jsgenterprises.com.

Related News

ImagiTrend Appoints First Member to New Advisory Board (PrimeNewswire via Yahoo! Finance)
WASHINGTON, Aug. 23, 2007 -- ImagiTrend, Inc. is pleased to announce that the Company has appointed Mr. Rajendra Prasad as the first member of its new Advisory Board. Mr. Prasad brings a decade of financial experience in investments and debt consolidation. ...more

A 'Silent' Menace (Washington Post)
The term "silent second" is used to describe self-serving or perhaps fraudulent schemes by which house sellers accept second mortgages as part of a sales transaction without the full knowledge of the first mortgage lender. ...more

Poor of Kentucky Pay More than Rich, According to Study (WSAZ NewsChannel 3 West Virginia)
Mortgages, interest rates on loans and insurance all cost more for the poor according to one report. ...more

Friday newspaper round-up: Cadbury Schweppes, Sports Direct, Tate & Lyle (ShareCast)
LONDON (SHARECAST) - Cadbury Schweppes is understood to be close to announcing its biggest cost-cutting exercise for four years with the closure of more factories, a round of job cuts and a move out of its expensive Mayfair offices. ...more

Credit Card Users Warned Over Costs (Sky News via Yahoo! UK & Ireland Finance)
Consumers are being warned to watch out for a rise in the cost of using a credit card as providers use a range of charges to make money from customers. The Office of Fair Trading last year told credit card companies to cut the penalty fees they charged customers to a maximum of £12. ...more