Foreclosing on a mobile home.

3 Replies

Hi my name is Sam. I'm real estate investor out of fresno ca. Recently I listened to Bigger Pockets pod cast #075 about mobile home investing and I absolutely love it! The question I have is, if I am selling a mobile home and I provide owner financing and 6 month later they stop paying, do I need to foreclose on them or do I just evict them? Is there a way that in the sales contract you can protect yourself from having to foreclose on them and just simply evict. 

Hi Sam,

Welcome to BP! Glad to hear you liked the podcast, we had fun recording it. 

Concerning your question you are likely to get a few different answers below.

My first thought after investing for over a decade is that I hate evictions and will try my hardest to settle out of court like adults. Most people who default will be happier to leave peacefully if you are able to give them a short-time to leave, perhaps some cash, and kind words. Almost no one wants an eviction or foreclosure on their record if it can be avoided. So in most cases a foreclosure or eviction is not needed to take back ownership.  

However, if you did sell to the wrong buyers and they are scammy people who purposely avoid your calls and messages legal action may be needed. If this is the case it depends on your paperwork as to whether you evict or foreclose or something else to take back ownership of the title or deed. There are a few unique ways depending how you are selling the home, how you sell the interest, and if the home is on real land you own or on rented land. 

Like most answers in real estate, it depends. I hope this vague answer helps some. It likely brings up more questions to ask and if this is the case don't hesitate to ask.  

Talk soon,
John Fedro

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