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.

Key protections in foreclosure:

• Notice required
• Right to cure: the borrower can cure (pay outstanding balance, fees and penalties) the default prior to foreclosure.
• Right to reinstate: the borrower can reinstate the loan and retake possession of the home after foreclosure by paying amount due, fees and penalties, depending on state law.
• Judicial foreclosure: a court order is required before the foreclosure process begins.
• Prohibition or limitations on deficiency judgments
• Due process in the event that consumers claim deceptive trade or misrepresentation

Key weaknesses of repossession:

• Limited notice requirements
• Limited or no right of redemption
• Deficiency judgments: lenders can sue the consumer for the balance owed on the loan after sale of the home.
• Nonjudicial foreclosure: self-help repossession allowed in most states where the lender is not required to go to court before proceeding with the repossession.
• No right to due process: self help repossession does not contain due process provisions such as notice before repossessing the home and does not provide an opportunity to make a court challenge.

Continue reading...