Like any other type of home, mobile homes can turn into foreclosed mobile homes if the owner fails to make regular mortgage payments. Mobile home foreclosures typically follow the same procedures as traditional foreclosures.

If the borrower defaults on loan payments for a manufactured home, the creditor can repossess or foreclose the home. How the creditor does this depends on whether the home is classified as personal or real property. Generally, the creditor repossesses the home if the home is personal property.

To put it simply, a manufactured home financed with a chattel loan will face repossesion. A manufactured home that is financed with a ‘regular’ permantly installed on land (meaning the land is part of the packaged loan) will face foreclosure.

When you buy a manufactured home, it may or may not be installed onto a property. If the mobile home you’re purchasing is a foreclosure, it means that the house is already on the land you will be buying as well. If the home has just been repossessed, you’re only buying the home.