Need Out In Michigan
My husband and I bought a mobile home in 2001, brand new, and put it in a park. In the past 2 years we have put $15,000 into it and our balance has not changed. A year-and-a-half ago we filed bankruptcy, but were able to keep the house. Now we pay $1200 a month between the mortgage and the lot rent, and we cannot do it anymore. We have not been able to save a dime, and more times than not we are behind. We were told at the time of sale that we would be able to refinance; that was a lie. This company does not refince, and much to our dismay, no one else will either (unless we were on our own land). At this point we are just disgusted with the house, and just want out from under it as soon as possible. The whole situation has made us both physically ill.
We want out, but have no clue how to proceed. We have talked about foreclosure, thinking that is our only option. We don't even want to consider keeping it at this point.
It just so happens that my husband's granmother's house is available for rent, and so a place to live is not really my concern.
I need to know how to begin. I will not hear from the bank for a payment until the latter part of April, by which time I already plan on having my things prepared for moving. My question here is, should I be talking to a lawyer before they call, ( I handled my bankruptcy without a lawyer, but will get one for this if it's is felt I should)or should I wait until they call and just tell them I can no longer pay the payments and that I am voluntarily ? doing what? forfeiting the house? I do not want to draw it out any longer than need be, and want to be totally compliant!
And what obligations do I have to the park? I am not in a lease agreement. Do I have to continue paying them thier lot rent until the foreclosure is finalized, or give them 30 days notice, and that's it? Please someone be able to help me with some answers!
Thanks
Sounds like a tough situation for you. With the bankruptcy and without your own lot, you're unlikely to get credit for refi. But, as a small consolation, just stopping your payments won't trash your credit much worse than it is right now, at least if you don't mind waiting another year and a half--the time since your BK--for it to get better.
Even though you don't care if you keep it, since you probably don't have much if any equity, investors probably can't help you get out, unless mobile values have risen a lot where you are. For whatever reason, it sadly sounds like your money has been poured down the hole, but it's gone, and you seem to realize that. You have some options, though.
If rebuilding your credit is important, you might be able to negotiate a "Deed in Lieu of Foreclosure" which basically means you move out peacefully and give your home back to the lender, in decent condition, in exchange (hopefully) for not putting the foreclosure on your credit report.
Maybe the county attorney (or a private one; try a phone call, you might get some quick free advice!) or a paid attorney could tell you your foreclosure options. A web search might give you a good idea of them too. The formalities of foreclosure will take weeks and often months, and you might have an additional redemption period (in Minn it's six months) so starting now--since you have a place to go to--you could actually rent it out and get something out of it w/o making any payments, at least if your scruples permit it.
Probably you'd better pay your lot rent during that time, too, to avoid them hauling it off. Just make sure you get a renter who's gonna pay, and that they know the term is only six months max, or eight months, or whatever. You probably don't need to tell them why, just say you're planning "to get rid of it soon," or whatever. And, for that matter, you could tell them that in exchange for no deposit--what's the point?--they must take care of any maintenance themselves; put that in their rental contract, save you the hassle. This forum is more about investing than about getting out from under your mortgage, but hopefully these ideas will help you get something out of your investment, and maybe others will add more ideas. To the chagrin of investors and lenders, 'the system' can actually be a little on your side in such situations, for awhile anyway. Good luck!
Hi Loon,
I wanted to thank you for all of your good advice,and more so just for responding at all! I realize that I posted suboptimally, just had no idea where to turn. You have helped immensely, and for that I am grateful! Thanks again!