“I’m behind in payments…will I be giving my mobile home back to the bank in Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster?”
Losing one’s home is an undesirable outcome. However, there are situations where financial circumstances can take a turn for the worse, making it overwhelming to meet financial obligations.
In the event that you encounter such a situation, it could potentially lead to surrendering your mobile home to the bank in Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster Pennsylvania, Connecticut, New Jersey, & New York, leaving you without a place to reside temporarily. Furthermore, it may have enduring repercussions, such as severely damaging your credit score (and potentially hindering your ability to obtain a mobile home in the future).
Certainly, this is not a desirable outcome. However, there is a proactive measure you can take today to safeguard yourself and regain financial stability.
What is a Foreclosure process?
Foreclosure procedures vary from state to state. If you are concerned about meeting your mortgage payments, it is essential to become familiar with your state’s foreclosure laws and procedures. These differences include the type of notices required, the length of redemption periods, and the scheduling and notice requirements related to property auctions. Nevertheless, you can gain a basic understanding of what to anticipate by reviewing our foreclosure timeline.
Typically, mortgage companies initiate foreclosure proceedings around 3-6 months after the initial missed mortgage payment. Late fees are imposed after 10-15 days; however, most mortgage companies understand that homeowners may experience temporary financial difficulties. Therefore, it is crucial to remain in contact with your lender within the first month of missing a payment.
After 30 days, the borrower is in default, and the foreclosure process accelerates. If you do not communicate with your lender and ignore their calls, the foreclosure process will start sooner. During any phase of the process, it is important to speak with your lender or a housing counselor about the various alternatives and solutions that may be available.
Three types of foreclosure can be initiated at this point: judicial foreclosure, power of sale, and strict foreclosure. All three require public notices and notification of all parties involved about the proceedings. When the property is sold at auction, families have a limited amount of time to find a new residence and move out before eviction is enforced by the sheriff.
Judicial Foreclosure is allowed in all states, and some require it. The lender files a lawsuit with the judicial system, and the borrower is notified of the demand for payment via mail. The borrower then has only 30 days to respond with a payment to avoid foreclosure. If no payment is made within a specific timeframe, the mortgage property is sold at an auction to the highest bidder, which is conducted by a local court or sheriff’s office.
Power of Sale, also known as statutory foreclosure, is allowed by many states if the mortgage contains a power of sale clause. After a homeowner defaults on mortgage payments, the lender sends out notices demanding payment. Once a waiting period has elapsed, the mortgage company, rather than local courts or the sheriff’s office, conducts a public auction. Non-judicial foreclosure auctions are often more efficient, although they may be subject to judicial review to ensure the legality of the proceedings.
Strict Foreclosure is allowed in only a few states. In strict foreclosure proceedings, the lender files a lawsuit against the homeowner who has defaulted. If the borrower is unable to pay the mortgage within a specific timeframe ordered by the court, the property is returned directly to the mortgage holder. Strict foreclosures usually occur when the debt amount is greater than the value of the property.
Fortunately – you have some options!
If you wait until your home is foreclosed, it can have a devastating effect on your credit rating. One option to protect yourself is to work out an arrangement with the loan company called a “deed in lieu of foreclosure”.
This is when you hand over ownership of the mobile home to the loan company so that they save the money they would spend on foreclosure proceedings, which can be significant. And you get to avoid having a foreclosure listed on your credit rating.
You can also avoid foreclosure by selling your mobile home before it’s lost at the auction. If your loan is paid in full then there will be no more penalties against you and your credit rating. (If your loan isn’t paid in full you will need to make up the shortfall).
Here’s an example: Let’s say you owed $40,000 on your mobile home and you sold your mobile home to us for $30,000. You would give that money to the loan company, along with $10,000 to make up the short-fall, and your loan would be paid off. If you contact a real estate attorney, you may be able to negotiate a deed in lieu of foreclosure deal in which the loan company agrees not to go after the difference in exchange for the deed or title to the mobile home.
At Sell Your Mobile Home Fast, we’re professional real estate investors. Contact us today at (570) 775-5777 to find out what we can offer you for your mobile home — even if it needs repairs.
I want to avoid giving my mobile home back to the bank in Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster!
Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
Well, losing a home can be difficult but the impact on your financial situation and your credit is considerably less than if you simply wait out the foreclosure process. In fact, going through foreclosure could impact your credit score by as much as 100 to 150 points. So the short-term challenge of selling your mobile home is still a better choice than the long-term pain of giving your mobile home back to the bank.