If you’re reading this article, chances are, you may be facing the dreaded realization of losing your mobile home to foreclosure. 

     The truth is that it is not so easy to prevent mobile home foreclosure. With all the talk of the subprime mortgage crisis, focusing on people losing their homes these days.  It is sometimes easy to forget those families that are living in homes not built on a concrete foundation.

Mobile homes are just as much of a home to those that live there as any mansion on a concrete slab.  Many families that live in them are being thrust into facing foreclosure due to no fault of their own.

The current bad economy with its massive layoffs, rising medical insurance premiums and tight credit, is making it tough for many families whose breadwinners are having to take wage cuts to keep their jobs.  All of these factors are working together and making it hard for these families to prevent mobile home foreclosure.

The one really good piece of news is that banks do not want to foreclose on a mobile home unless they have no choice.  This is because most depreciate like a car, rather than appreciate like a house.  A bank knows that it will not only lose a substantial amount of money if it has to foreclose on a trailer but it will have additional costs as well such as moving it off the property and storing it.

Any type of foreclosure is costly,  but a bank knows that if it has to foreclose or repossess one, there is little chance it will ever be bale to recoup its investment.

If you are facing difficult in making your monthly payments, here are a few things you should consider before taking any action so that you know what your options are.

1.  Take the threat of mobile home foreclosure seriously.

2.  Ask yourself the following questions to determine the options available to you.
 
     a.  Can you afford to lose your home?

      b.  Is your loan underwater? In other words, do you owe more on your home that it is worth? If it is a bank may be               interested in doing a short sale on the home depending on how long you have owned and paid on it. 

      c.  Could you handle the black mark on your credit history put there by foreclosure?

      d.  Can you rent an apartment, house or another trailer for less that what you are currently  paying?

                           Here are some alternatives you can try to save your home from facing foreclosure

1.  Talk and communicate with your lender before missing a single payment for best success.

2.  Ask for a temporary interest-only period of your loan where you only pay interest for a year or so.   Your monthly payments could be significantly reduced.  While you will still owe the principal, this could help you until your financial situation gets better.

3.  Try to work a second job temporarily until your financial situation turns around.

4.  Work to reduce your expenses and make your payments your highest priority. 

TIP:  You could even talk to a loan consolidation company that could help put all your payments into one.  Say you owe $5,000 on one credit card and pay $100 per month just for that particular card.  Then you have another credit card you owe $2500 on and you pay $80 per month, combined with the other card you are paying $180.00 per month.  With a loan consolidation company you could combine these two loans and pay much less than you pay just for one card.  

5.  Pay cash and stop using credit cards as they will only make your financial situation worse in the long run.  It is not easy to do but credit cards can get you in trouble quick.  You may make that one purchase thinking oh I will just pay it off later and then an unexpected event happens tying up your funds and money.  

6.  Stop all spending that is not necessary. Make lists when you go shopping and stick to them.  Don’t impulse buy and safe for a rainy day….you will be glad that you did. 

The truth is that the economy is bad but it is recovering and your lender would rather work with you than foreclose on your mobile home. 

​Talk to your lender before missing any payments, and you will have the best chance of working out a deal that can help you prevent mobile home foreclosure.

Photo by Markus Spiske on Unsplash / Photo by rawpixel on Unsplash