66 East Main Street, 3rd Floor Little Falls, NJ 07424

Debtor Wanted No Lien to Exist on Mobile Home

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Background:

  • Debtors purchased a manufactured home.
  • Home was financed by a Mortgage Company.
  • Loan was secured by a vehicle title lien on the manufactured home.
  • Debtors Filed Chapter 13 Bankruptcy and listed the Mortgage on their mobile home unsecured.
  • Debtors asserted that they mortgage company lost its lien when the manufactured home was permanently affixed to the real estate on which is was located.
  • Debtors argued that lender needed a deed of trust to have a secured claim.
  • Lender disagreed and argued that the attaching of the mobile home to the property did not affect its lien.

Court Ruling:

  • Bankruptcy Court agreed with the lender.
  • Code set for the only effective means of perfecting a security interest in a mobile home.
  • The later fixation of the mobile home was not significant.
  • Lender had a secured lien on the mobile home.