Legal Question in Real Estate Law in Minnesota

Re: Voluntary Repossession-Mobile Home?

Voluntary repossession is probably not going to solve your problem. That essentially is surrendering possession of the mobile home to your lender. You would only want to do that if you knew they were accepting it in full settlement of the loan, and I have never heard of a lender doing that.

My suggestion - consult a lawyer who does consumer bankruptcy work - such as me. Lots of my bankruptcy clients have been upsidedown on loans like that, and there's nothing like a Chapter 7 for getting right side up.

Re: Voluntary Repossession-Mobile Home?

I agree with Mr. Kelly about a bankruptcy solving the problem; of course, it will bang up your credit score pretty well, too. MAYBE you can negotiate with the mortgage holder to settle the debt by paying something and giving them the home. They probably will not do that, but you can try. If you can get into the new home first, the bankruptcy will be sort of irrelevant. However, just turning in the home does NOT relieve you of the debt, nor for that matter does it get you out of the lease with the mobile home park. Best bet is to try to find someone who wants your home and try to convince the "mortgage holder" to let them assume the loan and release you after a year or so.

Good Luck!!!