Creditors and Bankruptcy/foreclosure
QUESTION: I live in a Mobile Home Community. I hate the rules but put with them. We (me, husband and daughter) live in Fl. We messed up big time when we bought this.(mobile home)When I signed the papers, no body mentioned that the lot rent would go up every year. Last year it went from $304 to $319. Now in a few months (January) its going up again to $335! I am desperately trying to sell this and asking no money just take over my payments.
Sometimes I think my only recourse is to leave this and just let them foreclose. However in that situation what little credit I have will go down hill. We filed a bankruptcy in 2011.
I've thought about moving this mobile home to another lot but I have a $1000 lease on this
So the question is, if we do leave and let the bank foreclose, what happens? Will they chase me down? Take me to court? Or simply take the mobile home back,? I can't make an informed decision without being informed?
I thank you for your time and response in advance.
ANSWER: Hi Joyce:
If you surrender the mobile home to the bank they will sell it wholesale for a low amount and you will be responsible for the rest (called a deficiency), and there is a good chance they will indeed come after you or the difference. The procedure would be for them to take you to court and get a judgment and then they would come after you (chase you down, as you say).
Moving to another lot might be an option (one that has more reasonable and stable lot rental prices), but as you say, if there is a lease, you could still be liable to the mobile home lot for the balance of the lease payments even if you are not there. Again, the procedure would be to sue you and get a judgment, and then come after you for the amount of the judgment.
Bankruptcy may be a solution even with your prior 2011 bankruptcy. The usual rule between bankruptcy filings is eight years, but there may be a way to get around that since it has been four years since your previous bankruptcy. However, whether you can do that depends on some facts you donít state in your question. This would be easier to explain on the telephone if you would like to call me. I will not charge you just to talk on the phone, and you can call me anytime at this number when it is convenient for you. 915 261-3893
One more thing - Apparently you are very concerned about your credit, but again, depending on some other factors you do not state in your question, a second bankruptcy could actually put you in a better position credit wise than simply staying at the mobile home park where you donít want to stay. We can talk about this also if you decide to call me.
Jack Hall, J.D.
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QUESTION: am I going to file bankruptcy on car as well? If I do they'll take it won't they? I can walk some but my husband and daughter cant walk that much
They will NOT take the car. They canít - you will be protected by the bankruptcy. And they wouldnít want to anyway - your plan, that they will see, will provide that they get 100 per cent of what you would have paid them if you had not filed for bankruptcy in the first place. The only difference is that insofar as the car is concerned, you will be making the payments to the bankruptcy court trustee that will pay them, instead of you paying them directly.