The Manufactured Housing Forums

A few days ago i received a letter from the seller of my mobile home requesting information on my insurance for the dwelling. I find out that he wants to get a loan on the home using this house as equity.
My question to you... Is that legal?
I was under the impression that as a home owner and paying for the dwelling i would be the one if needed to get a loan on my own property as equity for that loan, NOt the seller doing so as he please because he is the rightful owner till i pay in full.

It brings to question what the liability on my behalf would be if he defaulted on the loan with no fault on my own . Would i be responsible for the loan then? This has been a very stressful period for me and with legal contracts and such I find myself lost as to who to beleive. I have read the contract and there is no mention of any rights by the seller to use this dwelling as collateral for a loan he decided to get for his personal reason. I would appreciate any information you may bring or direction thank you rudy P

You own the home as long as you make the payments.The seller has no right to use it as equity as he no longer owns it.It sounds as you have the home financed thru the previous owner?You are not on a rent to own deal or something are you?

You should have invested a few dollars with an attorney before you bought...now it might make sense to to protect your interests..

If you bought the home...the title SHOULD be in your name..it is probably the state law in your state...if the title is in your name..no one but you could use the home for a loan...The holder of the contract might use his contract as collateral for a loan..BUT..not the house itself..in this case if he defaulted it would not effect you...

In most states...no title..no ownership...this is very risky for you if this is the case...if he were to default on any loan..not even one with this home as collateral..OR..if he gets into tax problems...OR..he dies and the heirs want the home...Or he uses this home for collateral and defaults...the list of dangers goes on and on..You are in big trouble..you can very well loose it all...It would be a wise idea to spend a few dollars NOW and get local legal advice about your purchase documents and your risks..

Actually if the title is not in your name..insurance might not even have to pay..homeowners insurance only covers homes you actually own...not leased homes..

It could be legal for the seller with owner financing to use your home as security for a loan. Read the contract or contracts that you signed when you agreed to purchase and finance. In some states if you are buying on a contract for deed or if you are renting to own, it can be perfectly legal, unless the seller is restricted by the contract, because the seller is still the owner of record.

Take Mr. Murray's advice and invest in a good attorney to find out exactly what your rights are and what the sellers rights are under your contract