Question Through no fault of mine I think I'll need to BK (long)

[brattsgirl]

I have been trying for over a year to resolve an issue with a manufactured home that I bought a few years ago but am running out of options.

I am permanently disabled and living on a limited income, but am able to make all bill payments on time every month. I bought this home due to my disability and the need to be on one level and did not want to live in an apartment type situation. I had to sell my townhouse that I'd owned for many years because of the multiple levels. I had hoped that this would work out and that I'd never have to move again. But, having to maintain a 1900 sq.ft. home, all the maintence that goes with that, and the lot that I rent has become very difficult if not impossible at times. I can't do many of the things required to maintain the home and lot and have to pay to have those things done for me. Handymen in this area get about $100/hour.

I had real estate agent come out to let me know what they thought I could sell it for. I could sell it for more than is owed if not for one thing. The decks that were part of the purchase contract it turns out we're not build to code in many ways, and are dangerous as well. So unless and until that is rectified I can not legally sell the house. It would cost between $15-$20K to have rebuilt to code. I not only don't have the money to do that, I contend that I shouldn't have to. The seller is a business that sells new/used homes and owns the park where I rent the lot and it wasn't ever disclosed that they were only acting as an agent for the former owners.

He's a lying, greedy old man with a nasty attitude to boot. He had the paper work for my purchase done in a way that is absolutely deceptive, but then his attorney's that he has on retainer I'm sure helped with that. Every consumer affairs type places have not been helpful either.

I could sue but no attorney will take it on a contingency and they all want $200-$375 per hour. The seller has the money to drag the case on forever and he will as he's done so before on a class action case he lost. The lender won't allow me to surrender the home for the balance of the loan either. I only owe about $40K and it could easily sell for $50K at a bare minimum. I've already put $20K in upgrades when I bought it, as I thought I'd live out my years here.

My physical condition is getting worse every day. So much so that I seldom even leave the house due to the chronic/severe pain and limited movement. I have to get out from under this house and the lot soon and am now thinking BK may be the only way to do so. I have good credit and I'd like to keep it that way plus it's not fair to my creditors to take a loss when the issue is really the house. I know that sounds strange but, it's true, at least for me.

I own a car that's only worth about $4K, and my personal belongings. I live in Maryland. If I have to file BK I don't have the money for filing fees or attorney fees, which I assume would be at least a few thousand dollars based on the posts I've read here. I just don't see any other options. Does anyone here have any ideas? I'm at a loss and this stress isn't helping with my pain level either. So, if you have gotten this far and can offer and advice or words of wisdom, I will be so appreciative and thankful. Many thanks.

[tobee43]

why can't you sell the house "as is"....and put another 20k on the asking price and then negotiate the price down to cover the costs of the repairs.

[brattsgirl]

why can't you sell the house "as is"....and put another 20k on the asking price and then negotiate the price down to cover the costs of the repairs.

Oh how I wish it were that simple. First the home has to pass a pre-sale inspection by the owner of the park, and it won't with the decks as they exist currently, even though he sold it to me "as is" knowing these decks were built without permits and not to code. I know I wouldn't be able to sell it for $60K in this market. Unfortunately, manufactured homes have a whole different set of rules/laws than stick built homes. Thanks anyway.

[ValleYum]

A Chapter 7 will definitely make your credit take a hit - but it does seem to rebound faster if you were paying on time prior to filing. This was the case for hubby and I. We are both back in the 690-715 range just a little over a year after our Chapter 7. It sounds like this may be the only way to get rid of the albatross that your mobile home has become.

I found this info on Google. I remember one of our forum members talking about this wonderful legal help group in Maryland.

Get Legal Help

Do I Qualify?

MVLS provides pro bono legal representation to Marylanders with limited income in civil legal matters. Eligible clients are matched with a volunteer lawyer who has the skill and expertise to provide quality legal representation.

Geographic Areas MVLS Serves

MVLS provides pro bono legal services to individuals in every Maryland county, except Montgomery, Prince George’s, Allegany Counties, and the eastern shore counties of Queen Anne’s, Talbot, Dorchester, Kent and Caroline. These jurisdictions have local pro bono agencies. MVLS, however, will handle a few specialized matters in these jurisdictions including, tax disputes with the IRS and legal assistance for nonprofit organizations.

Income Eligibility Guidelines

An intake paralegal will let you know if your income falls within our guidelines when you call. Household income may not exceed 50% of the Maryland median income.

Their website is here: http://www.mvlslaw.org/clients/

The intake number is: (410) 547-6537 or (800) 510-0050- Mon-Thurs 9 am to 1 pm

I hope you find some help soon so you can de-stress and hopefully alleviate some of your pain. Perhaps other forum members will be along with more advice - we do have several members from Maryland here.

[brattsgirl]

Thanks for the link ValleYum. Unfortunately or fortunately, depending on how you look at it my income is higher than their limits.

[Pandora]

May be obvious (or then again...perhaps not..) but why not just tear down the non-code deck and be done with it?? Also - since you merely RENT the space your home is located in... I'd be checking into the law regarding who exactly is responsible for code / permits. To me, it would seem that the property owner (not the mobile home owner / renter) would be mandated to ensure all permits are up to date and everything passes code. You dont own the land.... he does.

If he sold it to you with the deck attached - then its on the landlord, not you. Another concern is if this is a manufactured home ( like a doublewide, right?) then how on earth could a deck cost 20K? Someone's screwing you with that price....horribly.

[brattsgirl]

Hi Pandora,
Well first in order to tear down the non code deckS I would have to pay for the demo. These are not small decks. One runs along the long side about 6' X 50' then there is a corner section about 4' x 4' then to the back deck that is 10' x 28'. It wraps around the house. And yes it's a doublewide, 28' x 70', it's huge. In this area that is the price range for these size decks to be demolished and rebuilt to code. The back deck is the biggest danger as it sits atop a very steep hill AND is attached to the back of the house. If, heaven forbid the 4"x4" posts ever slid out due to erosion or whatever, not only would the decks go down the hill, but so would the back of the house at a minimum. Even if I could have it torn down it would still need to be rebuilt as that is where the back door is located and fire department rules & insurance (I think) require 2 exits.

And you are so right about it being the Park Owner's responsibility to obtain the necessary permits and inspections and not the responsibility of the renter. However, since it's after the fact and the former home owner is gone, the Dept. of Permits and Inspections can't prove who actually built the decks. The Supervisor of P&I came out to look at them at my request, and even though they have aerial photos before & after the sale to me showing the change in the decks, and no proof of any permits or inspections he didn't cite me for the offense. But, then didn't know who to cite. The decks (as I've learned) were built by the former home owners and they didn't get the inspections or permits either. The Park Owner denies any knowledge of these decks being built. Of course anyone who lives here will tell you, he knows everything!!! Nothing slips past him at all, ever. Understand this, I'm dealing with a real low-life, greedy piece of work here. He dragged a huge Class Action case on for several years, but thankfully, he lost.

My contract even specifically states the decks & shed are included in the sale. I'm exhausted just trying to resolve this and move on, as this really is taking a toll on my health. I'm going to reach out to a couple of attorneys in this area that do both BK & real estate and see what they think. They will do a free initial consultation, so that helps.

Thanks for responding and I hope you have a better idea of what I'm dealing with.

[helpmeout]

If you are going to declare BK, stop paying the mortgage. And put that money towards the cost of a BK attorney. I surrendered the house in my BK, I stopped paying and was able to pay the attorney with the second missed mortgage payment with a little left over (my mortgage pmt was every 2 weeks). Oh, and I would stop paying the rent, as well. That will be discharged in a BK, but wait until you have paid your BK attorney.

[brattsgirl]

Thanks helpmeout. Well of course by now May's mortgage and lot rent have already been paid. And I hope to connect with a BK attorney sometime next week. FYI, my lot least states that if I default on the rent they will put a lien on the house to get it. And believe me he will file the lien ASAP. But, I suppose that wouldn't matter if I'm not keeping the house anyway.

As I move closer to making the decision to file or not, I have an odd question. As I stated in my first post I put about $20K into this place. How much trouble would I be in if I took or sold the new fridge, gas range, washer & dryer and a really nice wood pellet stove?? The appliances were original to when the house was built in 1993 and had to be replaced. Or I could sell them and replace them with older ones, or even trade someone with some additional cash from them.

The pellet stove was an add on for clean energy and to lower heating costs. I know I can't take the $4K for all new plush wall to wall carpet or the 21 new energy efficient windows, LOL but would if I could. The house is in much better shape than it was when I bought it. And none of the items I mentioned are listed on the finance agreement.

I'm so angry that no matter how I do things the right way, I'm the one that's going to suffer the consequences. And, I don't anyone to benefit from mistake, especially not the park owner that created this mess.

Thanks again.

[keepsmiling]

People take all they have put into the house and more. Sometimes they get really p.o.'ed and cement up the toilets too. Lots of debates about ethics in some older threads but in the end, as long as you leave something usable for the next owners I don't think you have anything to feel guilty about.

[DebtEnder]

The house is your until it is not. That my thoughts on what you can and cannot do. It's not the Bk court that worries about it, only if you end up with a pile of cash you can't exempt do they become interested.

I would think stop paying any mortgage as SOON as you KNOW your going to give the house up in a BK. Lot rent, well eviction for that tends to move faster. I would think not paying a month or two before you file would be about as long as you can go on that.

[ValleYum]

There is a $5k wild card that should cover her car - leftover $ can cover any personal property left. Diability $$ is exempt in MD. She also will have $6k in exemptions she can use to cover cash. I am on my Nook at the moment and can't link.

[helpmeout]

Thanks helpmeout. Well of course by now May's mortgage and lot rent have already been paid. And I hope to connect with a BK attorney sometime next week. FYI, my lot least states that if I default on the rent they will put a lien on the house to get it. And believe me he will file the lien ASAP. But, I suppose that wouldn't matter if I'm not keeping the house anyway.

As I move closer to making the decision to file or not, I have an odd question. As I stated in my first post I put about $20K into this place. How much trouble would I be in if I took or sold the new fridge, gas range, washer & dryer and a really nice wood pellet stove?? The appliances were original to when the house was built in 1993 and had to be replaced. Or I could sell them and replace them with older ones, or even trade someone with some additional cash from them.

The pellet stove was an add on for clean energy and to lower heating costs. I know I can't take the $4K for all new plush wall to wall carpet or the 21 new energy efficient windows, LOL but would if I could. The house is in much better shape than it was when I bought it. And none of the items I mentioned are listed on the finance agreement.

I'm so angry that no matter how I do things the right way, I'm the one that's going to suffer the consequences. And, I don't anyone to benefit from mistake, especially not the park owner that created this mess.

Thanks again.

That lien can be removed during the BK. But since you are not keeping the house, let the mortgage company deal with it. If the mortgage company properly filed the lien, then they come first. And if there is nothing left over after the sale, well, the second lien is SOL.

As for taking items, you probably would be okay with the Fridge, especially if it didn't come with a fridge, but the Stove is probably a no go since it is typically built into the counter. The washer and dryer are yours to do with as you please. The pellet stove, I would think that if you can remove it without leaving garish marks that would have an impact on the selling price, I don't see why not. But you are better off asking an attorney these questions.

[Bell30656]

Before moving out of my house, I redecorated. I changed every light fixture in the house to a $4 one from Home Depot. The matching stove, dishwasher and refrigerator were replaced with ones I picked up at a thrift store. There were no missing items, they just weren't as nice as the ones that were there the month before. The bank checked off and handed me my check (cash for keys).

[nohoneymoney]

I think it is time to talk to a few BK attorneys and get ready to walk away from this mess and towards a fresh start. As soon as you are about 3 to 4 months from filing quit paying mortgage, rent, and CCs. The money you save will pay for the attorney and help with your fresh start. Check with a real estate agent as to what must be left behind in the house and then take the rest with you and replace any new items you must leave with lower quality but working items. Don't do anything destructive or mean as you are not like the park owner. Before taking any actions discuss it with your attorney to be sure it will not adversely affect your BK discharge.

Side note: be sure to tell your BK attorney about your park owner and his willingness to go to court. Your attorney can help prepare you to deal with him before and during your BK.