Legal Question in Real Estate Law in California

The actual procedures and law that would apply will depend in large part upon whether the mobile home has been converted to real property or is still a vehcle and subject to the vehicle code. I suspect that if you are paying space rent, it is still a vehicle. In that case, it is probably subject to the so-called Rees-Levering Automobile Sales Finance Act, found at sections 2981 through 2984.6. Section 2983.8 provides that, in many instances at least, there cannot be a deficiency judgment against the borrower for failure to carry out the terms of a purchase. This may act to prevent you from owing any balance after a repossession or lender's sale.

If, however, the mobile home has become real estate by virtue of being permanently affixed to the ground, and being taxed as real estate, you are similarly protected against owing a balance due after a foreclosure, but by different law.

These protections are rather broad, but do not absolutely protect you from owing the lender a balance after a seizure, repo or foreclosure in any and all circumstances. If, for example, you have caused substantial damage, or haven't paid the property taxes, etc., you might still get stuck for a financial claim after you walk away. For this reason, I recommend that you take good care of the unit while you have it, communicate clearly with your lender, and do everything possible to facilitate a smooth transition of possession.