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Short Sale on Mobile Home

I can't afford my payments on my mobile home. What can I do?

I have a mobile home in another state. I can't afford the payments at this time and have had no luck in selling the mobile. What are my options, and can the finance company garnish current wages in the event it gets repossessed?

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Highlights

  • There are six typical requirements for a short sale.
  • Consult with your mortgage servicer to learn its requirements.
  • Learn more about the federal HAFA program.

Editor’s note: See the Bills.com resource Home Affordable Foreclosure Alternatives Program for an updated discussion of deeds in lieu of foreclosure and short sales.

You are a candidate for either a deed in lieu of foreclosure or a short sale.

The typical requirements for both are

  1. The residence must already be on the market for a certain number of days (90 days is typical)
  2. There can be no liens on the property
  3. The property cannot already be in foreclosure
  4. The offer of a deed in lieu of foreclosure or short sale must be voluntary
  5. The seller must have a hardship
  6. The house must be priced reasonably.

See Should I Do A Short Sale On Our Home? and A Deed In Lieu Of Foreclosure vs. A Short Sale to learn more about these options.

Collections

Assuming you stop making your payments on the mobile home and the creditor forecloses, the creditor has the right to sue you to collect on any deficiency balance and receive a judgment to collect this amount from you personally. See Collections Advice for more on the rights of creditors and debtors in collections.

A deficiency balance is an unsecured debt, and is legally like any other unsecured debt such as credit card debt, medical debt, or a payday loan. To see your options for handling unsecured debt, see What are my debt resolution options?.

I hope that the information I provided helps you Find. Learn. Save.

Best,

Bill

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