Foreclosure Process

• A foreclosure occurs when the lender uses its contractual right to seize the trailer home as collateral for the debt and sell it in order to recover the money it is due. Lenders are not anxious to foreclose any type of mobile home, because they depreciate in value more readily than other types of property, but foreclosure is still an option. If the foreclosure sale earns enough money to pay off the mortgage in full, no charges will be connected with the process. If the foreclosure sale does not fully pay off the principal of the loan, then the lender may sue for the rest of the money, but only up to the original principal of the loan.
  
  

Redemption

• The redemption period of a foreclosure sale allows the borrower to buy back the home even after the sale, by paying off the loan in full. In this case, the maximum charge is the full amount of the principal which must be completely paid off, including all late payments. However, late payments often have penalties associated with them that must also be paid, which can amount to several hundred dollars based on the standards set by lending organizations.
  
  

Associated Fees

• Other fees may apply to a foreclosure but usually only if the foreclosure is challenged in anyway. For example, a borrower can hire an attorney to represent the case at court, and attorney charges can vary but will typically be several thousand dollars on average. Others may choose bankruptcy to escape the foreclosure, but most states charge up to $300 to file for bankruptcy with all the required paperwork.
  
  

Short Sale

• A short sale is a common foreclosure compromise. Borrowers can live in their trailer homes but put them up for sale on the real estate market, as long as the proceeds are used to automatically pay off the mortgage. In this case, a short sale will often fall short of covering the full principal, just like a foreclosure sale. The lender can either demand the rest of the money, or forgive the remaining balance completely. However, the maximum charge is again only on the maximum of the principal first borrowed.