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Homeowners that are lateon their mortgage installments and batting deficient equity are usually at their wits end and badly in need of help. If this sounds familiar, you may want to reconsider your options and search for foreclosure. A short sale could bea fantastic alternativedeservingmajorexamination. Manufactured Home owners often fail to seethat the repercussions of a foreclosure are quiteunlikethose of a Mobile Homeshort-sale.

Gettingfinancing for any futureManufactured Homepurchases will be next toimpossible after a foreclosure. A Mobile Homeowner wholosestheir home due to foreclosure becomes ineligible forFannie Mae financing for five years. On the other hand, aManufactured Homeowner whonegotiatesa closed short sale will be deemed eligible forManufactured Homefinancing after only two years.

The lendingcrisis has evokeddizzying monetarypenalties for Mobile Homeowners that end up defaulting on their loan. In a foreclosure, theMobile Homeowner’scredit rating may drop down toanywhere between 250 to 300 points. Due to this, it may take upwards of three years to bring a credit score back to life after a foreclosure on a Manufactured Home. Usually duringa short-sale transaction, only the late monthlypaymentswill show adverse effectson the credit report.

After the Manufactured Home is sold, the loan will be reflected as paid off or negotiated, and this will only eeduce the overallcredit score something like 50 points. These effects of a short sale may be as short as 12 or 18 months. However, the foreclosure proceedings may stayon the record of a person’s credit history for 10 years or potentially longer. Additionally one must consider that during every Manufactured Home foreclosure, the lender has the opportunityto enforce a judgment for the deficient loan.In the process some short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the mobile home owner.

During A foreclosure, the mobile home must go through an REO process if it does not sell at auction.In many cases this results in a lower sales price and longer time to sale in a declining market.Ultimately this ends up in a higher risk scenario, where a deficiency judgment will likely be enforced.However, in a short sale, a home is sold at a price that will likely be near the actualmarket 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 taken the necessary steps to satisfy your debt is essential for your financial future. This may be the most important reason of all. And when you consider the long-lasting consequences of having a Mobile Home foreclosure on your record, it is clearlyin your favor to avoid the foreclosure process. Having a foreclosure on your record is quite like that of a bankruptcy, when trying to obtain financing for a Mobile Home purchase. If you would like the option of
JD Evans is an industry expert in manufactured home loans. He currently manages mobile home refinancing activities in California.