RV owners now have no choice but to rely on the mercy of the dominant finance firms.
As Ms. Burnworth found out, this can be difficult. Her unemployment benefits were insufficient to cover her expenses after she lost several short-term jobs, including one with the Census Bureau. She requested a loan modification from 21st Mortgage to reduce her monthly payments, but said the company was unwilling to offer her one – even after she began receiving regular checks from the government in August to look after her son To take care of.
In a statement, Clayton Homes, the parent company of 21st Mortgage, said it hasn’t made any loan changes as it believes offering short-term credit to borrowers for a missed payment works better. The company said it provided Ms. Burnworth with a total of $ 3,649 in loans for her mortgage when she ran into financial troubles and failed to request repayment in previous years.
“It’s my responsibility to look after the house and make the payments, but it’s hard to keep a job when you have a sick child,” said Ms. Burnworth. She said she had already paid out over $ 130,000 in principal and interest during the life of the loan, which bears an interest rate of 9.25 percent. Clayton denied the amount she had paid, noting that her loan had not been heard for the first few years she lived in the house.
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While Ms. Burnworth owns the land her RV is on, many RV owners rent a place from operators of RV parks, which are increasingly operated by large real estate companies. This arrangement means RV owners can make payments to both a finance company and a real estate company – which increases their likelihood of being evicted if they find themselves in financial distress.
There is already Hints that evictions could increase when the moratorium and post-pandemic aid end. A review of eviction requests in six states by the Private Equity Stakeholder Project, a nonprofit advocacy group, found five major RV park operators on a list of 150 corporate rental companies who have filed the most eviction lawsuits since the federal moratorium went into effect in September.
Raul Noriega, an attorney at Texas RioGrande Legal Aid who specializes in prefabricated housing cases, said eviction for non-payment of rent to a park operator could amount to foreclosure as moving a trailer could cost several thousand dollars.