Clayton Homes follow the same legal guidelines for repossession as all other manufactured housing companies. How the home is repossessed depends on whether the home is considered personal property or real estate.
The Mobile Home Construction and Safety Standards Act that was passed in 1974 set forth certain standards that all mobile home manufacturers, Clayton Homes included, had to follow. In 1980, Congress officially changed the name of this type of housing from mobile home to manufactured housing. Homes built on or after June 16,1976 were considered manufactured housing, while those built prior to this date were still considered mobile homes.
Mobile and manufactured homes can be classified as either personal property or real property. If the home remains on its chassis and can be moved, it is considered a mobile home. If the home has been attached to the ground, then it is real estate. This designation determines how a home can be repossessed.
Homes that are considered personal property are repossessed via replevin, a judicial process on which the creditor requests the court to grant an order for repossession. If it is granted, the creditor can take the home from its current location. If the home is considered real property, the creditor follows the foreclosure process. The creditor goes to court and asks to file for foreclosure on the home. The foreclosure process for a mobile or manufactured home is the same as for a site-built home in the state where the home is located.