Legal Question in Real Estate Law in California

I have a rental mobile home that is paid for. But I used it as security when my daugther took a $20,000 personal loan from a private party. I want to get rid of it but homes are not selling. Can I just sign it over to the loan lender to pay her loan and walk away from it? Does the lender have to agree to take this form of payment or by originally accepting it as security was he automatically agreeing to to take it as payment? I just want to be done with the property and her loan.


Asked on 10/07/10, 10:59 am

1 Answer from Attorneys

He is under no obligation to accept it as payment. Security is an optional resource that the lender may but is never obigated to look to for payment (with some exceptions in real estate that don't apply to mobile homes). Also, even if they take it as payment, they only take it at its fair value. If it's not worth what is owed the balance is still due. If you can't sell the MH for $20,000 or more, then even if the lender accepts it, it is not going to pay off the debt. Bottom line: you need to negotiate something with the lender, or sell the MH for $20,000 and pay him.

Read more
Answered on 10/12/10, 11:18 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California