Manufactured/Mobile Home Foreclosures

Prior to July 1, 1994, New York State treated manufactured housing and mobile homes as fixtures attached to real property. The ownership was transferred by a Deed to the land and a “Bill of Sale” and “Affidavit of Affixation” stating that the wheels and axles had been removed to establish that the manufactured or mobile home was “permanently affixed to the land”.

Effective July 1, 1994, however, New York began to treat manufactured housing units and mobile homes as motor vehicles, instead, and defined manufactured housing as any structure of not less than three hundred twenty (320) square feet, built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation.

Accordingly, for all such manufactured housing units built on or after July 1, 1994, Lenders should confirm that a lien was properly placed on the manufactured housing, and obtain the following documents:

  1. Certificate of Origin (issued by the manufacturer)
  2. Notice of Lien (DMV Form MV-900) signed by the unit owner
  3. Notice of Recorded Lien (DMV From MV-901) issued to Lender by DMV
  4. Newly issued Certificate of Title with name of Lienholder (DMV Form MV-999)

In order to “foreclose the mortgage” secured by a manufactured housing unit built on or after July 1, 1994, an “Affirmation of Repossession” and “Bill of Sale” (DMV Form MV-950) must first be submitted to New York’s Department of Motor Vehicles (DMV) and a “Notice of Repossession of Motor Vehicle” (DMV Form MV-327) will then be issued by DMV.

The foreclosure complaint must include a reference to the manufactured housing unit and attach, as an exhibit, the “Notice of Repossession of Motor Vehicle”, which will provide that:

  1. Notification of Repossession has been delivered in person to the police agency in the locality where the repossession occurred;
  2. Notification of Repossession has been delivered to a New York Motor Vehicle Issuing Office; and
  3. Notification of Repossession has been delivered (within 24 hours) to the manufactured housing unit owner.