about bankruptcy - Posted by mbrother11

Real Estate Investing Real Estate Law
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Posted by Sean on March 13, 2001 at 21:07:32:

When a person stops paying on a mobile home you have three methods of recourse:

A) Repossession
B) Slamming their credit
C) Lawsuit

Generally when someone stops paying you repossess the mobile home first. When you sell that mobile home any amount left unpaid the person still owes you, then you can decide if it’s worth your time to put it on their credit or pursue a judgement.

However once the person files BANKRUPTCY they are no longer personally liable for the debt. That doesn’t stop you from taking back the mobile home, but if they owed $4,000 and you repossess a mobile home that’s worth $3,000 they don’t still owe you $1,000 because of the bankruptcy.

You could always put it on their credit as a repossession, but they’ll just get a copy of their bankruptcy discharge papers and send it into the credit bureau to get it updated to “included in bankruptcy.” Since they already have a half-dozen other accounts showing “included in bankruptcy” … what’s another one?

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about bankruptcy - Posted by mbrother11

Posted by mbrother11 on March 11, 2001 at 01:56:04:

I’ve been reading posts here for a few weeks, and what you are doing seems very interesting. I checked the archives for mention of bankruptcy, and did not find this question answered. If I finance a MH for someone, I have a lien on the MH, but if they file bankruptcy, does the lien protect me? One of the archive postings was from an investor who said he was dealing on a MH and the owners decided to just give it back to their lender because “it was included in their bankruptcy a few years ago, so returning it to lender would not hurt their credit.” I must be dense, because I just can’t figure out how that could be true.