Finance & Investment Articles - Why to Avert a Foreclosure on your Mobile Home


by JOHN CAIN - Date: 2009-12-18 - Word Count: 498 Share This!

Homeowners who are lateon their mortgage payments and struggling due to insufficient equity are often at their wits end and badly in need of help. If this sounds familiar, you may want to think twice and search for foreclosure. A short sale could bea fantastic substitutiondeservingmajorconsideration. Manufactured Home owners often fail to realizethat the repercussions of a foreclosure are quiteunlikethose of a Mobile Homeshort-sale.

Gettinga loan approval for any futureMobile Homepurchases will be next tohopeless once a foreclosure has been reported. A Manufactured Homeowner whohas losttheir dwelling due to foreclosure becomes exempt from obtainingFannie Mae loans for five years. However, aManufactured Homeowner thatreconcilesa closed short sale will be deemed acceptable forMobile Homefinancing after only two years.

The mortgagecrisis has evokeddizzying financialpunishment for Mobile Homeowners that default. In a foreclosure, theManufactured Homeowner'scredit rating may be loweredanywhere between 250 to 300 points. Due to this, it can take upwards of several years to bring a credit score back to life after a foreclosure on a Manufactured Home. Usually duringa short-sale situation, only the late mortgageinstallmentswill show adverse effectson the credit score.

Once the Mobile Home is sold, it will be reflected as paid off or negotiated, which will only eeduce the overallcredit score around 50 points. These effects resulting from a short sale may be as short as one year to eighteen months. However, the foreclosure proceedings will remainon the report of a homeowner's credit history for 10 years or potentially longer. Another consideration is that in every Manufactured Home foreclosure, the lender has the opportunityto enforce a judgment for the deficient loan.During some short sales it is possible to convince the lender to forfeit their opportunity to enforce a deficiency judgment against the defaulting owner.

During A foreclosure, the mobile home must go through an REO process if it does not sell at auction.In many cases this results in a lower sales price and longer time to sale in a declining market.Ultimately this ends up in a higher risk scenario, where a deficiency judgment will likely be enforced.On the contrary, in a short sale, a home is sold at a price that will likely be near the normalmarket value and in almost all cases will be better than an REO transaction.

You can not put a price on the peace of mind in avoiding a foreclosure on your Mobile or Manufactured Home. The knowledge that you have done everything possible to satisfy your debt is essential for your financial future. This may be the most important reason of all. And when you consider the long-lasting consequences of having a Manufactured Home foreclosure on your credit report, it is obviouslyin your favor to avoid the foreclosure process. Having a foreclosure on your record is quite like that of a bankruptcy, when attempting to get a loan for a Manufactured Home purchase. If you would like the option of

CAMHF is a licensed mobile home finance expert. They have helped hundreds of families in California get a manufactured home refinance.


Related Tags: finance, loan, loans, refinancing, financing, refinance, lender, refi, manufactured home, mobile home

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