What Happens After a Mobile Home Repossession in Texas?

Texas mobile home owners may face repossession if they fail to abide by the loan agreement.

According to Consumers Union.org, mobile homes are often financed with personal property loans or chattel mortgages. This means that the mobile home can be repossessed by the lender if the borrower defaults on the loan. Texas residents may be sued by the lender for a deficiency judgment, once the home is repossessed.

Sale

Repossessed mobile homes in Texas are usually sold after the foreclosure process is complete. Lenders who wish to sell the mobile home must send the borrower a notice by certified mail. Notices must be sent at least 21 days prior to the sale date and contain information on the time, date and location of the sale.

Right To Cure

Texas law states that mobile homeowners who have lost their homes to repossession have a right to cure the debt before the sale of the home. Borrowers must cure the debt by paying the total amount due on the home loan, as well as any fees associated with the repossession of the home. Borrowers in Texas must cure the debt within 20 days from the notice of sale from the lender.

Deficiency Judgment

Lenders in Texas have the right to sue the borrower for deficiencies that may result once the mobile home is sold. However, Texas law states that lenders are limited by fair market value of the home.

References

• Consumers Union: Manufacture Housing Repossession
• Bank Repo Mobile Home: Bank Repo Mobile Home