Legal Question in Credit and Debt Law in Texas
Repossession
I signed for a son to buy a manufactured home. They got a divorce and quit paying. I can not afford to pay note, unless it is rented out. What happens if I let it go back to lender? Right now it is over six month behind in payments, but has not been forclosed on. Any suggestions?
Can I lose my own home, or belonging if I let manufactured home go back? Land where it sits is not part of the loan.
Can I stop a lein from being placed on me?
1 Answer from Attorneys
Re: Repossession
Not sure what you mean by "signing for a son". If you were a co-signer or guarantor of payment (because son didn't have the credit), son has title to the trailer and all you have is the obligation to make the payments. You have no legal right to either let it go back or to rent it out.
However, if the title is in your name, you can rent it out, try to sell it, or let it go back to the lender as a voluntary repo.
In either event, you will be liable for the unpaid portion of the note. The creditor can't take your homestead but they sure can ruin your credit and take judgment against you. You should have a real heart-to-heart talk with your son and explain the bind he's put you in. Maybe he'll contribute toward keeping the note paid up.
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