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The Reasons to Avert the Foreclosure Process on your Mobile Home

Homeowners who are delinquenton their mortgage payments and struggling due to insufficient equity are often tired and desperate for help. If this sounds familiar, you may want to reconsider your options and search for foreclosure. A short sale might beone great substitutiondeservingmajorexamination. Manufactured Home owners often don’t seethat the consequences of a foreclosure are veryunlikethose of a Manufactured Homeshort-sale.

Obtainingfinancing for any futureManufactured Homepurchases will be nearlyimpossible once a foreclosure has been reported. A Mobile Homeowner thatlosestheir dwelling due to foreclosure becomes exempt from obtainingFannie Mae financing for five years. On the other hand, aMobile Homeowner thatnegotiatesa closed short sale will be deemed eligible forMobile Homeloans after only two years.

The mortgagecrisis has evokedexcessive monetarypunishment for Manufactured Homeowners that default. In a foreclosure, theManufactured Homeborrower'scredit score may drop down toanywhere from 250 to 300 points. Due to this, it may take upwards of several years to bring a credit score back to life after a foreclosure on a Mobile Home. Usually ina short-sale transaction, only the late mortgagepaymentswill show adverse effectson the credit score.

Once the Mobile Home sale is completed, it will be reflected as paid off or negotiated, and this will only eeduce the overallcredit score around 50 points. The effect of a short sale can be as brief as one year to eighteen months. On the other hand, a foreclosure may stayon the record of a person’s credit timeline for up to ten or more. Another consideration is that during every Mobile Home foreclosure, the bank has the rightto enforce a deficiency judgment.In the process some short sales it may be possible to convince the lender to forfeit the right to pursue a deficiency judgment against the defaulting 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.The ultimate result is a higher possible deficiency judgment.However, during a short sale, the home is sold at a price that will likely be near the actualmarket price and usually will end up better than an REO transaction.

Avoiding foreclosure on your home can afford you piece of mind that is essentially priceless. The knowledge 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 Manufactured Home foreclosure on your record, it is clearlyin your favor to avoid the foreclosure process. Having a foreclosure on your record is similar to a bankruptcy, when trying to obtain financing for a Manufactured Home purchase. If you would like to finance) a Mobile Home loan within a few years, then avoiding foreclosure is vital. The best options for you may be in a professional, with experience in real estate and loan restructuring.

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The Reasons to Avert the Foreclosure Process on your Mobile Home