With the faltering economy, the number of foreclosed trailers is on the rise. If you have found yourself facing trailer foreclosure, you do have some options.
First of all, it is important to understand a little bit about the foreclosure process. When you get a loan for a trailer, or any other piece of property, that property is used as collateral to back the loan. That means that until you pay off the loan, although the property may be in your possession, it is owned by the bank or lending institution through which you got the loan. If you miss enough payments, your loan defaults and the bank can take repossession of your trailer. There is a golden window of opportunity between bank repossession and foreclosure during which you can still reclaim your property if the loan balance is paid in full; however, once foreclosure or trailer repo is complete, you no longer have claim over it, and it becomes the property of the bank.
If you have found yourself falling behind on payments and feel that foreclosure is just around the corner, there are some things you can do to try to protect yourself. First, you can contact you bank or lender and try to negotiate different terms on your loan that will make monthly payments more manageable. This may include a lower interest rate or a lengthening of the repayment period. If that does not work, then you may want to offer a short sale. With a short sale, the lender agrees to accept an amount that is lower than the balance of the loan. To get a short sale, you will have to find a buyer first and make a convincing argument that the lender is better off accepting the guaranteed lower amount rather than taking the risk that you may file for bankruptcy. If you file for bankruptcy, the lender is likely not to recoup any of its losses.
Trailer foreclosure is avoidable, it just takes a little time and creativity.
