Foreclosure in Troutdale>Question Details

Brakallie1, Home Buyer in Troutdale, OR

My manufactured home sits on rented land. I must walk away from my mortgaged home. What can the owner of the land do as the home remains on his land?

Asked by Brakallie1, Troutdale, OR Sat Oct 2, 2010

I understand foreclosure, however with this munufactured home in forclosure, the home will remain on his land. Can he come after me and to what extent of the law. I am doing everything except bankruptcy and I just need to start over.

Help the community by answering this question:

Answers

5
DON'T just "walk away", but tie up as many loose ends as you can.
Many leases state that if BOTH AGREE, then the lease can be formally ended early. Best idea is to ask the owner to agree to that! and in writing. Since you obviously can't pay, it might make sense to him/her. Make sure you are giving notice at the very least, and make sure you are taking all utilities out of your name when the Mfg home passes to the new owners (bank). etc Tie up those loose ends!

It wouldn't hurt to go to the Oregon statutes pages about mobile homes and leases etc.
READ THEM. and see an attorney.
http://www.oregon.gov/ohcs/CRD/mcrc/docs/oregon-revised-stat…
0 votes Thank Flag Link Sat Jul 11, 2015
The land lord has the right to the rent - so if the home is foreclosed on it is then the banks responsibility to pay the land lord - you would no longer be responsible. The bank does not pay the land lord-they can lien the home for the amount of rent due...then when it is sold - the land lord gets paid and the new owner can move it or pay to stay there. The landlord of course has the choice of requiring it be removed. Many possibilities come with a situation like this. BUT once you have been foreclosed on and move out - from my understanding any way, you are done.
0 votes Thank Flag Link Sun Oct 3, 2010
Im Curios how this worked out for you as i have same situation... But in CA.
Flag Thu Mar 27, 2014
There are two almost entirely separate issues here.

One is the foreclosure on the mortgage. And you understand that part of it.

The other is your rental agreement with the owner of the land. That's governed by your land lease. What does it provide? I assume (always dangerous) that when you "walk away" from your home, you'll stop paying the rental on the land, too. If that's the case, what does your rental agreement say about defaulting on your rental?

Both Corri and Kevin offer some good practice advice and experience on what may happen. But first, as far as your responsibility to the land owner, look to your lease.

Hope that helps.
0 votes Thank Flag Link Sun Oct 3, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If the lien holder of the manufactured home waives its right to the collateral the burden then becomes the land-owners as I assume you won't be involved in moving it. Most lenders will remove the home and liquidate it but sometimes because of age and/or condition will choose to walk away like you have. The landowner can sell it if the lien holder gives title or he can take title through process of abandoned property. If you are under contract then yes he can come after you for costs incurred as well as the lender on the manufactured home for the balance on the note. Most people in your situation will end up filing bankruptcy to escape these liabilities.
0 votes Thank Flag Link Sun Oct 3, 2010
This depends on large part what the rental contract states with the owner of the land. His legal ramifications are outside of what is happening with your lender, a completely separate matter.

From past experience with this situation, the bank removes the manufactred home from the land, and yes, they can. This is something the land owner should have been aware of before renting the land to someone with a mortgage. You, as the tenant on the land are still responsible for honoring the lease if there was one.

Sometimes there are also other things involved in this situation such as a well/septic system and/or electric to the home. This can all get complicated, but it depends on the agreement/contract for renting the land.

I would advise you to speak with a real estate attorney to make sure you are aware of what to expect, and maybe how being proactive can help you in the long run to get a better start when you start over.

Good luck to you
0 votes Thank Flag Link Sat Oct 2, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer