Does a repossession of a mobile home affecta spouse if they aren’t on the loan?

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Does a repossession of a mobile home affecta spouse if they aren’t on the loan?

I am 63, lost my job and now on SS. Am having trouble making payments on my mobile home which is in my name only. My wife still works. If the mobile home gets repossessed, can the lender garnish my SS or get money from my wife?

Asked on August 8, 2010 under Bankruptcy Law, Alabama

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I am sorry for your troubles.  Many people are in the same position that you are in this day and age.  If the bank forecloses on your mobile home and sells the home for less than the loan, a "Deficiency judgement" will remain. Although they can go after many assets to collect, your social security is not one of them.  But there ma be other options for you before you default.  First, check and see if you can modify your loan in any way.  There are many programs out there, especially for the elderly, that can help.  Another option would be to sell the home yourself in a "short sale" and request approval from the bank and a waiver of the deficiency. The third option would be to give the home back to the bank with a "deed in lieu of foreclosure" and with a guarantee of no deficiency judgement.  Foreclosing is expensive for a bank.  They would prefer not to have to do them.  Check with your state attorney general's office as to agencies that can help guide you.  And if the judgement is in your name only they can not garnish your wife's assets.  But watch for joint bank accounts.  Good luck.


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