Creditor objected to cram-down of mobile home and land under §1322(b)(2). The Debtors contended that §1322(b)(2) did not apply since the mobile home still had its wheels, axles, and hitch attached and never had its DMV Certificate of Title cancelled.
The Court turned to N.C. Gen. Stat. § 105- 273 (13) (d) to determine if the mobile home was real or personal property, finding the pertinent requirements to be all of the following:
1. It is a residential structure.
2. It has the moving hitch, wheels, and axles removed.
3. It is placed upon a permanent foundation either on land owned by the owner of the manufactured home or on land in which the owner of the manufactured home has a leasehold interest pursuant to a lease with a primary term of at least 20 years and the lease expressly provides for disposition of the manufactured home upon termination of the lease.
Based on this, the mobile home was not real property and §1322(b)(2) did not prohibit modification.
That notwithstanding, the Court did decline to reduce the value of the entire property by the amount it would cost to remove the mobile home, since the Debtors intended to keep the mobile home.
Melara Case Bankruptcy Court Middle District NC.PDF
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