Posted by Tony-VA on May 17, 2000 at 16:44:31:
Just a few notes. You won’t actually have to “foreclose” as these homes typically are not considered Real Property. You simply repossess the Personal Property. I imagine that this is done a bit differently in each state so a trip down to the local court house may be your best bet. Simply explain that you are the lien holder on a mobile home located in a mobile home park and the payor has stopped paying. They can guide you from there.
One suggestion that I highly recommend is to try and work it out directly with the buyer gone bad. I believe it will be less expensive, less hassle and less damage will be done to the home if you simply meet them, explain that you are going to have to file for repossession, call the entire balance of the note due and evict them. Explain that instead of doing all that and getting (another) judgement against them, if they will leave the home in a broom swept condition and you do a walk through, have them sign the home back over to you, you will call it even. You may even want to give them $100 to rent a truck. Payable as they leave. I always hated the thought of giving someone money that still owes me money but I now feel certain that in the long run, it will cost me less.
From personal experience I can only say that so far maintaining a good relationship with the buyers and working with them has kept me from having to go to court. I have had two buyers return their homes to me and I waived the note. Neither asked for anything, only thanked me for giving them the chance to own a home when no one else would. In both cases, they buyers had put several thousand dollars worth of improvements in the home and asked for no compensation. Both homes sold almost immediately at higher prices with good down payments. The down payments from the second sales not only returned all my investment but I walked away from the table with profit in hand.
This will not always be the case. I am a realist but I try and keep my court time to a minimium. Buying right and selling “As is” really makes these pills a lot easier to swallow.