manufactured home repossession

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Latest post 06-09-2008 2:52 PM by crhmadeit. 9 replies.
  • 05-24-2008 9:18 PM

    Feedback [*=*] manufactured home repossession

    In 1989 we purchased a manufactured home.

    about 5 years later we sold the home on what our laywer later described as a rent to own contract to another person, retaining the original loan in our name (yes this was dumb, hindsight being 20/20).
    Payments were to be made directly to the mortgage company by the buyer.

    Fast forward 14 years and our buyer(MJ) simply quit making payments. When I (or the mortgage company) contacted her, she would tell me she had made the payment and told them she would make the payments. Right on up to thirty days ago.

    It's evident at this point she is not planning on paying this note.

    Being as we are 18 years into this there really isn't a lot left on the loan (no land involved this a retail sale contract).

    It seems I have two choices: pay it off or let it go back and pay the defiency if any.

    I'm not opposed to the first option except, I suppose I would still have to go through the process of kicking out MJ and moving the stupid thing to my land and reselling it. More trouble than it's worth?

    If I let it go back, MJ is already named in the repossession proceedings that I was served with today. That means, (correct me if I'm wrong) I don't have to deal with the whole eviction process and if the mortgage co reposses I also don't have to deal with moving the home off MJ's property.

    Now, since MJ's been chronically late for the last 12 years and I had my own financial problems during that time, my credit is already not particularly good.

    So, the real question here is which option might be the least financially taxing and just how badly will a repossession of this type affect my admittly poor credit rating? (while my credit may not be the best I have at long last mastered the art of living without credit cards (paid 'em off, cut them up) and only have debt on one car and my own home, other than the manufactured home)

    Thanks in advance for your feedback.

    I'm not absolutely sure I have posted this in the best place. Mods feel free to move it.
  • 05-25-2008 12:28 PM In reply to

    • DPH
    • Top 10 Contributor
    • Joined on 10-08-2001
    • TX
    • Posts 7,596

    Feedback [*=*] re: manufactured home repossession

    What was the term of the original loan (how long) and the how much is left outstanding?

    When you determine what's left on the laon, you can then make a decision on how you would like to proceed. Have you discussed this with the attorney who advised you originally? If not, I would discuss this with that person to help decide the best course of action.

    "Never argue with stupid people, they will drag you down to their level and then beat you with experience."  -  Mark Twain


  • 05-26-2008 12:52 PM In reply to

    re: manufactured home repossession

    20 years was the original term. Should have paid off in June or July of 2009.

    What the last statement claims the principal balance is and what the papers we were served claim we owe are two different amounts. The difference between those two amounts is about $2500. That is a bit of a puzzle.

    As we were serve on Saturday and this is Memorial Day, no laywer to be found. First thing tomorrow though, we'll be calling him.
  • 05-26-2008 5:25 PM In reply to

    re: manufactured home repossession

    If the court papers show a higher amount than the statement balance, it's because they've added interest, attorney's fees, and expenses. The loan contract probably allows for the collection of attorney fees.

    If you are going to consider paying off the balance, you'll have to take that into consideration.

    Your best hope of negotiating a reasonable payoff is before they go through all the effort of repo, eviction, recovery, and sale.

    Otherwise (if bankruptcy is not an option for you) you could end up paying 2 or 3 times the balance after all is said and done. That could be a lot more than it would cost you to do eviction and repo.

    If you are willing and able to file bankruptcy, then you have the option of ignoring the lender and filing when you get the final bill or judgment.

    You might want to check your credit reports. If the payments have been delinquent for a while, it's probably already on your credit reports.

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  • 05-27-2008 9:29 PM In reply to

    • Drew
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,585

    re: manufactured home repossession

    The fact that somethig may be a lot of trouble to you may not be what it is to the other side--it could be worse.

    The rules about manufactured homes and contracts for title can get very state specific--but the general intent is to sidestep all the issues you face as a seller if the buyer drops the ball to reposses a defaulted sale by never having conveyed title inhte first place. So in the extreme if the buyer has defaulted you may be able to just show up and toss the buyer and move the unit if necessary--just how hard you can play is very much a state law issue and you need to be dealing with some counsel in that state familiar with rent to own and manufactured home issues. Such toss the buyer stuff led to excess decades ago and various states put in safeguards for buyers--you need counsel to address what if any safeguards apply in your state.

    The buyer may be assuming you lack the wherewithall to play hardball with them as buyers .

    They may find a whole lot a cash when you show up with a chain saw and a lowboy and a crane.

  • 05-27-2008 9:59 PM In reply to

    re: manufactured home repossession

    Well my contract with the buyer says I only have to give a 24 hour notice before tossing them for simply missing one payment, but my lawyer told us years ago that we really couldn't do so and that we'd have to evict as if they were renting.

    The mortgage company is going the court route on this, apparently (I'm a little confused at this point), but the home appears to still be on the buyers property.

    I say apparently, because Saturday, someone delivered a set of forclosure papers that had a court filing no. on it but not a court stamp. I talked to the mortage co. today who told me that they would allow me until Friday to bring the mortgage up to date (thus putting it back on me to get rid of the buyer or get her to pay up).

    But then tonight the sheriff served me a set of papers dated over 30 days ago (stamped too) telling me I had 30 days to answer the complaint. Is it normal to wait 30 days after a complaint is filed to serve the defendent with the complaint?

    I was going to go the route of paying the mortgage up to date, but now I'm wondering if I really have that option or if the mortgage co is playing games.

    I'm thinkin' in the morning I'm going to get ahold of my lawyer.
  • 05-27-2008 10:55 PM In reply to

    • Drew
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,585

    re: manufactured home repossession

    I think you want to be in the drivers seat on this one and not let the lender freeze you out.

    I think that these is some question if a buyer under a contract for title is a tenant within the contect of AL new uniform L-T laws--its certainly in need of some skilled AL counsel familiar with such issues.

    BUT, lets assume occupant is a tenant-and you elect not to toss as per contract---AL seems to have a rather LL friendly law---once the tenant is late, as yours is, with swift notice you can move against him in 7 days after you give notice PLUS law appears to allow for you to tack on all your damages PLUS your attorney costs. Often state laws do not permit LL to recover attorneycosts.

    And I'd be of view that your damages are not just all the added lender fees you got stuck with if deal required he pay lender directly but also your costs to move item back to your property and site it and/or deliver it elsewhere for sale....

  • 05-27-2008 11:03 PM In reply to

    re: manufactured home repossession

    "And I'd be of view that your damages are not just all the added lender fees you got stuck with if deal required he pay lender directly but also your costs to move item back to your property and site it and/or deliver it elsewhere for sale.... "

    I'm of the same view, but there this whole "can't squeeze blood out of a turnip thing" that I have to consider here and my buyer may well turn out to be a turnip.

    In any case, at this moment I'm a bit more concerned with being delivered, today, with papers stamped April 30, giving me 30 days in which to respond. Am I correct in the idea that I have only 3 days in which to get ahold of my laywer AND respond to the complaint, or do I have 30 days from today (date of delivery) to respond?
  • 05-29-2008 6:10 PM In reply to

    • Drew
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,585

    re: manufactured home repossession

    1. No clue how to count days in AL--ask counsel.

    2. I'd file action against thier land as well then file a lis pendens --tie up that value.

  • 06-09-2008 2:52 PM In reply to

    re: manufactured home repossession

    I would love to file against the land that the mobile home sits on, but that land belongs to the buyers parents and not the buyer herself.

    Anyhow, as of last week sometime, the mortgage company is happy with me and the suit recinded.

    We are now in the process of evicting her and filing for a judgement against her. If we're lucky, she'll come up with some money.

    Otherwise: Anyone want to a used manufactured home? LOL!

    Thanks for everyone's help.
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