cooperative share parks

[Martin Roger]

Can someone define these type of parks in Northern California, and if a lender finances a purchase, what the lenders rights are in the event of a foreclosure.

[David Oxhandler]

In the event of a foreclosure the lender has the right to take possession of the home, remove it from the site, move it to where ever they like, make repairs and renovations if they feel it will help to remarket (resell) the home.

Most people don't realize this but in the event of a repossession the finance company looses money every time. When the home was purchased the finance company paid, not just for the home but for the transport and installation expenses and often some if not all of the improvements to the land (water, septic, electric etc..). The costs involved in most states to make a repossession, lawyer and court fees, loss of income during the repo phase, the expenses of physically taking possession, making necessary repairs & renovations, relocation, and reselling the home in almost every case finds the finance company with an investment in the home that exceeds the market value.

Ultimately lenders just want to sell the home in order to recover the highest percent of the amount of money that they lost when the home owner stopped making payments. In the majority of cases the lender is very lucky to get back fifty to sixty five cents for each dollar that they have invested.

[Jon DeTora]

Martin:
If I correctly understand your question you are referring to a manufactured home community that is cooperatively owned by the resident/tenants, and you are questioning in particular the rights of lender in the case of a foreclosure one a share in the cooperative. If my assumption is accurate, the next bit of information needed is whether the specific cooperative only owns the land upon which the manufactured home is placed, or whether it owns the manufactured home and the land. In either case an entity that lends money to a resident for the purchase of a cooperative share would likely have its rights defined within the by-laws of the cooperative. However, I would expect that lender's leverage to be broadened if the manufactured home is owned by the cooperative organization.
In New York such cooperatives own and operate the land as a manufactured home community. Under this scenario many lenders insure their ability to re-market the share prior to advancing the loan. In addition, I have been told a lender may also require from the resident an interest in the manufactured home that would enable the lender to sell the home and the share as a package, use the proceeds to pay the overdue amounts, and forward the balance to the original (and departed)resident.
I hope the above is helpful. Please let me know if the question I've answered is the one you actually asked.