Manufactured housing:

A home that the law still treats like a car

Febrary 2005
PDF Format

Executive Summary
We recommend

Report:
Repossession: Hauling off entire households
Foreclosure laws
Power of sale clauses reduce foreclosure protections
Repossession
Limits on self-help repossession
Right to cure and right to reinstate
Anti-deficiency laws
That is not the home I ordered
Recommendations

Sidebars:
Definitions
Key protections in foreclosure and key weaknesses of repossession
Deed of trust
Park tenancy
Drew Industries
Homestead Exemptions

Charts:
Foreclosure laws in six souhwestern states
Southwest states repossession laws
Right to cure default before repossession/Right to reinstate after repossession

Director
Reggie James

Author
Suzanne Henry

Editor
Kathy Mitchell

Design
Amanda Frayer

For more information, contact:
Suzanne Henry,
Policy Associate
512-477-4431 x121
shenry@consumer.org

Kathy Mitchell,
Research Coordinator
512-477-4431 x125
mitcka@consumer.org

Rafael Ayuso,
Media Director
512-477-4431 x114
ayusra@consumer.org

This report was funded in part by a grant from the Ford Foundation.

Click here to find out more about manufactured housing.

Definitions:

Real Property loan: A loan that finances the purchase of a home and land. Foreclosure is required after a loan default.

Personal Property loan: A loan that finances a manufactured home that is not attached to land. The lender can repossess after a loan default. These loans have limited consumer protections.

Underwater: When the value of the home is less than the loan amount. The borrower has no equity in the home.

Deficiency: The difference between the amount the lender receives for the sale of the home and the unpaid balance of the loan.

Attached: A manufactured home must be permanently attached to real property in order to be financed with a real property loan. The definition of attachment to real property may depend on state law or a lender’s requirements. Requirements can include removal of wheels and axles, installation on a permanent foundation, and attachment to utilities.  States usually have a process for converting the title on the home from personal property to real property.

Self-help repossession: When a creditor seizes property without the explicit permission or voluntary surrender of the debtor, requiring no judicial ruling or other third party oversight of the process.

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