Update: on the SHTF for us

[Kenneth in NC]

UPDATE: September 11, 2006

DW schedule keeps changing. One day she has to go in and work 3:45 a.m. till 2:45 pm next day 6:45 a.m. till 2:45 p.m. So far she has not had any time on the Laser machine so no opportunity to make production pay.

GREEN TREE has now moved into the Final Stage. I talked at length with the Senior Account Controller. She was very nice and took time to explain the “future” proceedings. We have three options left.
(1) Pay in $750 thus becoming current and keep account current. This is what GT would prefer

(2) Pay $250 on or before 20th of September 2006. Then Pay $250 on or before 29th of September 2006 and then $250 on or before October 15th 2006. This would cause Green Tree to Defer 2 of the missed payments and they would agree to tack them on to the end of the loan.

(3) If we do not do 1 or 2 then Green Tree will turn account over to legal and the loan is in “Complete Default”.

The SAC told me that they have a locale attorney that would file all legal paperwork and in 48 hours after turning it over to legal, I would receive a letter from Shelby Court House notifying me that I had defaulted and then with-in 48 hours the Sheriff would be out to observe as a locksmith changed the locks and a GT rep took pictures and inventoried household contents. Then GT would have the locale Horton Dealership send out a mover to take the mobile to a lot down in Atlanta they have for holding collateral until they can sell or auction it off.

Several well meaning folk have tried to tell us that we had more time, that it would require “foreclosure” proceedings. This is not the case. When there is no land involved a mobile home loan is like a car loan. You default and the collateral is picked up. (This has been verified by two different attorneys)

NOW we can be nice and offer “Voluntary Surrender of Collateral” and avoid being sued for legal fees. ALSO and this is a Biggie by the VSC we would NOT BE liable for any other fee’s or debts associated with the mobile home because it was in a bankruptcy action. According to the Green Tree SAC collateral in a bankruptcy action such as a car or mobile home are surrendered unless the party filing the bankruptcy keeps to the loan agreement. If not then if the party voluntarily surrenders the collateral he/she looses all equity and the collateral itself. If the party fights then they become liable for the Mortgage holders attorney fees and has to pay all back payments plus fees, penalties and their own attorney fees.

According to the Century 21 Realtor, IF we add a window, closet, kitchen sink and bedroom, add plumbing, water and sewage lines our building would become a “cottage” and could be considered living quarters for two adults and one child.

My brain feels like mush. I had though that DW getting a job would cause a lot of this stress and problems to go away. All it seems to be doing is making her back hurt and wearing her down while just covering the gas to go back and forth with a few bucks to put on bills.

The *witch* at the medicade office said if DW made $525 or more GROSS per month that the medicade would be terminated. Same for the FS. I have said it a million times that the assistance programs are geared to keep the recipient down, not to foster hope, nor help the recipient to get back on their feet.

Just thought I'd bring you guys up to speed on what is going on here.

Kenneth

[MWG]

So what are you planning on doing (if you don't mind me asking)?

If you could pay the $750?

If you could make the first $250 payment?

If you can't make any of the payments?

[ladycat]

Originally Posted by Kenneth in NC

Several well meaning folk have tried to tell us that we had more time, that it would require “foreclosure” proceedings. This is not the case. When there is no land involved a mobile home loan is like a car loan. You default and the collateral is picked up.

That is true. My brother had a mobile home repossessed. The situation was treated exactly like a car loan.

Originally Posted by Kenneth in NC

I have said it a million times that the assistance programs are geared to keep the recipient down, not to foster hope, nor help the recipient to get back on their feet.

Having been through the assistance nightmare myself a few times, and having helped other people through it, I can verify that is TRUE!

[jonc]

A thought - I work in corporate financial services and usually if we are trying to collect from someone any payment whatsoever shows some "intent to pay" and helps to slow legal proceedings. No payment at all helps the default case build strenght, but if weekly payments are made it shows an effort, regardless how small the payments might be. Not paying anything only works against you. Even if you pay $100, it still shows an effort which at a desperate point might buy you valuable days. This might work, but I don't know the whole story. Just an idea.

[Qwispea]

Sorry to learn that things continue to be bleak for you! I wish there was something more I could do to help you.

[AngieM2]

Just out of curiousity...
IF you could do the $750 or the three $250's, would you be able to keep the payments up in the forseeable future? That would make a big difference in the decisions you need to be making.


Also, what kind of work could you do? Office stuff, anything around a farm?
Answer a phone? Do "security" work, basically checking badges, etc. Are there any u-store-it storage facilities around there that could use desk help?
I'm ust trying to keep thinking forward....


Angie

[Kenneth in NC]

Originally Posted by AngieM2

Just out of curiousity...
IF you could do the $750 or the three $250's, would you be able to keep the payments up in the forseeable future? That would make a big difference in the decisions you need to be making.

Angie the honest answer is I don't know. If DW can handle the weird hours and the constant changing job duties (she's working through a temp service) then the answer would be yes. If she can't and nothing presents itself that she can handle then the answer is no.

Originally Posted by AngieM2

Also, what kind of work could you do? Office stuff, anything around a farm? Answer a phone? Do "security" work, basically checking badges, etc. Are there any u-store-it storage facilities around there that could use desk help?
I'm just trying to keep thinking forward.... Angie

Angie we have one vehicle and this year we are homeschooling our daughter.

As to office stuff probably not.

Around the farm NO,

Answer phone sure,

Security work Nope applied and because of the Congestive Heart Failure was told that I would be a major risk and no insurance company is going to touch me with a 10-foot pole.

Right now my pain level is 7 so as you can see it's 3:45 a.m. and I can't sleep.

jonc The SAC (Senior Account Controller) at Green Tree was adament about the only options left to us. She said she understood the twist and turns that led to this dilema but GT has new guidelines and there was only the 2 ways she could work with us. She went on to suggest that if we were giving up the collateral then make absolutely sure we contacted GT before our account was sent to legal to finalize default paperwork to avoid GT suing us for attorney and filing fees.

MWG Right this moment I do not know.

Kenneth

[Terri]

In other words, your wife must turn over her entire paycheck for 6 weeks or you will lose the mobile home.

I slpt on this last night, but I could come up with nothing. Excepting that every person has a boss, including the senior account manager.

I would talk to her boss, you have nothing to lose.

Or, sell it fast, but used mobile homes might not sell fast as they are not in hot demand like used cars are. Of course, that MIGHT work in your favor as then Green Tree would end up with a mobile home that is hard to sell, as opposed to having your cash. Cash might be more to their advantage.

[Melissa]

I keep thinking that a $250 a month payment is so much cheaper than renting another place would likely be. Is there anyone at all you can borrow the money from? Do you get any preapproved credit card offers? I know this is not a great solution, but to save your home it would be worth it.

[AngieM2]

Now I need to go think more....

I'll try to come back to this thread later today.

Angie

[Kenneth in NC]

The SAC answers to corporate. Corporate has already "suggested" throwing the loan into default.

Out of the 13 people I have talked to at Green Tree the last 2 have been somewhat nicer and did take the time to explain GT's legal position.

Credit Cards are not a solution.

At this point GT only concern is getting Cash or collateral. Period. They know the mobile most likey won't bring more than $5-7,500 at wholesale auction. But that is no longer a consideration.

Kenneth

[AngieM2]

Describe the little cabin structure that is on the property....

We may have to think about you getting it fixed up and letting the mobile go...exploring all possibilities...

Angie

[Cornhusker]

Can you sell the mobile on your own for enough to pay it off?

[homebirtha]

I have only read parts of these threads, so if I missed this, I apologize. Can I ask, what about all the money that was sent to you from folks here on HT? Is any of that left to help cover this?

[frazzlehead]

Hi Kenneth, glad you posted but sorry to hear it's such a dire situation.

My son and I lived in a small cabin (10x14) for a few months while our house was being built.

I'm with Angie - maybe your best option at this point is to get your cabin into a liveable state and allow the mobile to go on it's way. That hurts, I'm sure, but if there's a real possibility that you'll be in this position for several months (i.e. there's no event four months from now that will miraculously change everything if you can just hang on until then) ... perhaps it's best to consider that your current finances don't allow for the mobile, but you DO own the land (which is a nice big plus!).

So what if (just thinking here!) instead of putting your DW's paycheque towards GreenTree and the mobile you invested that money in the cabin to make it a cottage ...

Would you guys be able to hold out there for awhile, until you sort out what to do next?

[BeckyW]

My understanding of mobile home financing is EXTREMELY limited. Know this about voluntary surrender of collateral on a car loan: The bank is NOT required to auction/sell the car for fair market value/loan value. In fact, they can sell the repossessed auto for any price they want (usually a very very low-ball offer) and then can legally come after you for the difference. So the $20000 car that you just surrendered and was auctioned for $4000, the remaining $16000 (difference between loan and auction price) will now be billed to you (and risk another judgment lien.) Since MH loans are VERY similar to car loans, I have to assume the same practices exist in that business.

IF you can, you are better off selling the secured-loan item yourself, in this case a mobile home, for as good a price as you can get really fast (in the trade known as a "fire-sale price"), and then work out a way to pay the bank the difference. Let's say all you can get is $15K on the $20K MH loan. Owing the bank $5K is MUCH better than owing them $16K. The absolute truth is that YOU will get more money selling it yourself than voluntary surrender and letting the bank auction off to some MH sales lot.

Just my two cents worth. Best of luck to you.
BW

[Kenneth in NC]

BeckyW under normal circumstances you would be correct. In this case the mobile is under the bankruptcy curtain. Regardless that we offered to reaffirm the debt GT decided to leave it under the bk banner. SO if we surrender the mobile that's the end of it. no repercussions from GT.

The flip of that is we have invested $25,000+ in this mobile and that's a lot to loose.

Kenneth

[AngieM2]

Reality thoughts... thinking outloud (so to speak).

1. $750 now or $250 x 3, keep the mobile home then have 2 payments on the back end, interest getting added also... future interest not the present issue. Likely hood of being able to meet this, almost impossible. The probability of being able to make future payments - unknown, but not likely under present conditions. Conclusion, may be better to let it go back.

2. Small building, potential cottage. Stated needed closet (why not a chiffrobe or enclosed fabric/plastic hanging closet like used for clothes storage), a window - discards from others, or from Habitat left over store.
Extra room...check out the storage buildings similar to what sancraft has for when she's at her land. Connect to current small building, this can be ordered and can have the window already in it, if that's where the window is to go. It's not finished on inside, but back to Habitat for maybe something insullation wise, and something to cover wall. Both of the last could be alumnimum foil or $2 solar blankets facing out taped inside the upright boards, and then folded quilts and the "wallboard" may just be old blankets .
I'm thinking Goodwill or equivalents here. The buildling like sancrafts is a rent to own and no credit checks, a 10 x 10 for the extra bedroom should not be very much per month.

3. Sink and plumbing.... thinking sink at Habitat, free cycle etc. Plumbing, don't know how much you would be able to do. Also I bet you'd need a toilet and you said sewage lines, which leads us to the sewage hook up. BUT, you have all that already in from the mobile home, whew - thought I was going to have to think of that. So you have sewage, electricity and water already available. PVC piping isn't very much (how far would you have to get the bath/kit water and sewage to travel)? Is your land clay or rock, or easily digable? Not necessarily Kenneth, but someone (later concern).

4. How is the effecting your 12 year old daughter? Do you have family in the area that she could visit while changes are made?

5. Even if you don't believe in it, can you get divorced to give a legal separation of funding, this will effect food stamps, housing, earned income credit, possibly your SSI, and all the government programs.

6. Have you contacted doctor and EVERY manufacturer of your meds for the special programs that they have.? I know there are programs where pharmisutical companies have some programs to make meds very little.

7. How much land do you have? I'm thinking 2.5 acres or so. How is the cabin and mobile home situated? Center, left, Right? If there is a .5 or 1 acre portion you could lease out or sell, that might help some.

8. You have internet, have you thought of signing up at WEST, as a few people on this board has so they can take orders for companies such as HSN, Office Depot, etc. That is not leaving home and making some money. You already have internet and a phone. You might have to get DSL to do this. But if you work at it you could bring home even $50 a week more than you have now.

9. Also, is there anyone that doesn't have good land, and maybe you do, that wants a garden where you could provide the land, and they could grow it and pay you in food? Sharecropping basically.

10. How much of the land is in mature trees? Any special types of wood, that could be sold off?

Conclusion at this time...
I think given what we've been told,
that the mobile home should be returned, and use every cent to fix up cabin ASAP and move your stuff you want to keep in it. If left in mobile home, it will be gone. Get any local friends to help get that building into a cabin, check how much the extra room would be to rent...

Start planning NOW. People helping financially now, no matter how much we want to, will not fix this situation - we need to help you learn how to fish.

I'll keep thinking.

Angie

[Kenneth in NC]

16x36 consisting of a 16x24 room, 10x12 room, and 6x12 bath room. It would have to be plumbed, water and sewer lines ran to it. It has no kitchen. Legally it would require a window installed in the 10x12 and a window, a closet, bedroom and sink installed. At the moment it is piled full of stuff out of the mobile home and things like a work bench and homemade shelving we put in. Bear in mind this has been our catch all - shop storage for over 8 years.

Also a HT poster pointed out that I have actually got very good service out of the 20 year shingles and need to consider the roof when thinking of moving into it. Building was built back in 1988.

Kenneth

[AngieM2]

How much of the necessary cabin/cottage changes are you able to make. Physically and knowledge?

Angie