What Happens After Mobile Home Repossession?
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Judicial Mobile Home Repossession/Foreclosure
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In a judicial foreclosure, the lender files a foreclosure lawsuit against you, also known as a notice of default or a Lis Pendens, in the county court. Depending on the court's schedule, you will be served papers soon after informing you of the lawsuit and requiring that you file an answer. Your response could buy you some time, depending on when you file. If you file your answer at the last possible moment you can take advantage of the foreclosure time line. While the court process is going on, you can work on bringing your loan current or sell the property.
Upon receiving your answer, the court schedules a foreclosure hearing. This typically takes a few weeks. At the hearing, the judge will examine the facts of the case against you and your answer to the summons. You may also ask the judge to give you more time if you are trying to bring your loan current or sell the home. If the judge agrees, he will schedule a follow-up hearing at which time you should have made some progress with your plan. Based on the specifics of your case, the judge may either give you even more time or render a judgment against you if you are unable to pay what you owe. If a foreclosure judgment is entered against you, a sale date will be set to auction your property so that the bank can recover what it is owed. The auction is a public sale and anybody can bid on the property. If nobody buys it, it becomes bank-owned property. If you fail to file an answer to a foreclosure summons and do not appear at a hearing, the process will go on without you, following the normal foreclosure time line.
Once the sale is finalized you will be given a notice to vacate the property on a certain date. If you do not leave on the said date, sheriff's deputies may forcibly remove you. Judicial states follow this basic process of judicial foreclosure and mobile home repossession with a few variations.
Non-Judicial Mobile Home Foreclosure/Reposession
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In a non-judicial foreclosure after your lender has been unsuccessful in getting you to bring your mortgage current, your lender informs you in a letter of their intent to foreclose. The lender then files some sort of public disclosure of this notice. In some states this is done in the county court house, in others it is in the legal newspaper. The notice usually states that the property will be sold in 21 days. That is why non-judicial states are often called 21-day states. A copy of the notice is sent to you. If you are unable to cure the default within 21 days, the home is sold on the court house steps in a public auction. In some states such as Texas, the sale is final and there is no right of redemption.
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Right of Redemption
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Some states also have some sort of redemption period following the foreclosure sale before the sale is made final. During this period the homeowner can redeem the property by bringing the loan current.
The most important thing in a foreclosure is to be in constant contact with your lender as soon as you fall behind so the situation is resolved before it gets to the foreclosure or repossession stage.
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