Central District Consumer Bankruptcy Attorney's Association

From NACBA:
Loans on mobile homes that are considered personal property under state law are not subject to the anti-modification treatment and can be "crammed down."
I think mobile homes are personal property under California law, but ask the group.
Sina

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Dear Listmates:
After having considered the law I think I know the answer but I wanted to
get your thoughts on this situation.
Potential Client purchased a mobilehome in Aug. 206 for $280,000. They put
100K down and owe 160K now, payment is $1,500.00/mo. They have 20 year loan
with 7.75 interest. They are current on payments. Have 65K in credit card
debt trying to survive. My question is whether the Mobile home can be
treated as a "Trailer" and crammed down to Fair Market value which would
probably be about $55k. Paid over a five year plan would reduce their
payments down to about $1K a month. Or is the Mobilehome subject to the "no
adjustment to first mortgage on property which is primary residence of
debtor." Also their park is in the middle of a conversion, they are told
that they will be allowed at some point to purchase the land where their
trailer sits. But unknown date as to when they can do that. This may
effect the value because of possible future right of purchase. But could
that be argued as too speculative to determine value? Also if it is treated
like a trailer/car can I simply bifurcate in the Chapter 13 Plan, or will a
formal motion to value personal property be required.
I appreciate your comments and suggestions confirming the way I would try to
treat the home.
R. Grace Rodriguez, Esq.
OFF: (818) 734-7223
CEL: (323) 304-5496
NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
for ex parte Applications via voicemail or by email. You must comply with
California Law and give notice to a person in my office during regular
business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and
confidential information and is intended only for the individual named. If
you are not the intended recipient you should not disseminate, distribute,
store, print, copy or deliver this message. Please notify the sender
immediately by e-mail if you have received this e-mail by mistake and delete
this e-mail from your system.
Dear Listmates:After having considered the law I think I know the answer but I wanted to get your thoughts on this situation.Potential Client purchased a mobilehome in Aug. 206 for $280,000. They put 100K down and owe 160K now, payment is $1,500.00/mo. They have 20 year loan with 7.75 interest. They are current on payments. Have 65K in credit card debt trying to survive. My question is whether the Mobile home can be treated as a "Trailer" and crammed down to Fair Market value which would probably be about $55k. Paid over a five year plan would reduce their payments down to about $1K a month. Or is the Mobilehome subject to the "no adjustment to first mortgage on property which is primary residence of debtor." Also their park is in the middle of a conversion, they are told that they will be allowed at some point to purchase the land where their trailer sits. But unknown date as to when they can do that. This may effect the value because of possible future right of purchase. But could that be argued as too speculative to determine value?Chapter 13 Plan, or will a formal motion to value personal property be required.
I appreciate your comments and suggestions confirming the way I would try to treat the home.-- R. Grace Rodriguez, Esq.OFF: (818) 734-7223CEL: (323) 304-5496NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice for ex parte Applications via voicemail or by email. You must comply with California Law and give notice to a person in my office during regular business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and confidential information and is intended only for the individual named. If you are not the intended recipient you should not disseminate, distribute, store, print, copy or deliver this message. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system.

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