Why to Avert the Foreclosure Process on your Manufactured Home

Homeowners that are lateon their loan payments and struggling due to deficient equity are usually tired and desperate for help. If you are facing a foreclosure on your mobile home, you may want to think twice and search for foreclosure. A short sale might beone great alternativeearningmajorconsideration. Mobile Home owners often fail to seethat the repercussions of a foreclosure are quiteunlikethose of a Mobile Homeshort-sale.

Gettingfinancing for any otherManufactured Homeventures will be next toimpossible after a foreclosure. A Mobile Homeowner thathas losttheir home due to foreclosure becomes exempt from obtainingFannie Mae financing for a period of five years. On the other hand, aMobile Homeowner whoreconcilesa successful short sale will be deemed eligible forMobile Homeloans after only two years.

The mortgagecrisis has brought onexcessive monetarypunishment for Mobile Homeowners that end up defaulting on their loan. During the foreclosure process, theMobile Homeborrower'scredit score may be loweredanywhere between 250 to 300 points. Because of this, it can take over three years to bring a credit score back to life after the foreclosure on a Manufactured Home. On the other hand ina short-sale situation, only the late monthlyinstallmentswill show adverse effectson the credit report.

Once the Mobile Home is sold, the loan will be reported as paid or negotiated, and this will merely lower the reportedcredit score something like 50 points. The effect resulting from a short sale can be as brief as 12 or 18 months. On the other hand, a foreclosure will remainon the report of a person's credit timeline for 10 years or potentially longer. Additionally one must consider that during every Mobile Home foreclosure, the lender maintains the rightto pursue a judgment for the deficient loan.During some short sales it may be possible to negotiate with bank to forfeit the right to enforce a judgment for deficiency against the mobile home owner.

If a home does not sell at auction during a foreclosure, the property must then go through an REO process.Unfortunately, this usually causes the price to hit rock bottom, and the sale takes significantly longer to complete.Ultimately this ends up in a higher risk scenario, where a deficiency judgment will likely be enforced.However, in a short sale, a home will likely be sold at a price that should be near the normalmarket price and in almost all cases will be better than an REO transaction.

Avoiding foreclosure on your home can afford you piece of mind that is essentially priceless. Knowing that you have done everything possible to satisfy your debt is vital for your financial future. Although it seems obvious, this is a strong point against foreclosure on its own. And when you consider the long-lasting consequences of having a Mobile Home foreclosure on your record, it is clearlyin your benefit to avoid the foreclosure process. Having a foreclosure on your record is similar to a bankruptcy, when attempting to get a loan for a Mobile 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.