Foreclosing a mobile home

Question

My mobile home is not selling; if I walk away, what will that do to my credit, which is above excellent? How much time will it take to clear it off my credit once this happens? What are the repercussions of doing this?

Answer 1

Generally you will mess up your credit for at least 5 years. As a foreclosure, the property will be sold and anything above the balance owed will be given to you, minus all sorts of fees that will suddenly appear.

You may be better off to lower the price so it does sell even if it means a loss at this time. You don't want to be paying the top (higher) rates on your credit cards or when you chose to buy another car.

Go to your lender and discuss it with them. You may even have to consider refinancing to get a lower payment you can afford and then renting it out.

Answer 2

With a foreclosure, the mortgage company sezies the property, sells it at auction and with it being a mobile home, which depreciate in value, you will owe probably a good amount after the sell, which you are responsible for. The foreclosure takes a good hit on your credit, stays on your credit report for 7 years and will make it tough to finance in the future. Any time a repossession comes into play, most people file bankruptcy as a protection to keep the home, but I don't suggest it unless it's absolutely the last resort! You can try to work with the lender to reduce a payment, roll back a payment to the back of the loan and see if that will help you get caught up until you can sell it. Cut back on expenses, utilities, cable, anything to ease up some money on things you really don't need, and try to to the best you can to save it. The foreclosure debt like I stated stays on your credit report for 7 years, a bankruptcy filing stays for 10 years. If you feel you need to file for bankruptcy a good bankruptcy attorney in your area will see you on a free consultation and review what your income is, debts, assets and taxes and give you more information on how it works. Personally, I would try to save the home before doing anything. Good Luck!!