A mobile home is repossessed if the borrower of the loan that financed the home defaults on the loan, according to Nolo. How the repossession is done depends on if the home is personal property or real property.
A manufactured home is considered personal property when it is first acquired, as stated by Nolo. However, some states allow the owner to convert the ownership from personal property to real property. To be classified as real property, the home must be permanently attached to land. Some states also require that the land be owned by the owner of the mobile home.