The 2011 mobile home law (P.A. 96-1477) related only to the taxation of certain mobile homes as real estate under the property tax code. The IBA has been supporting legislation that would establish a formal method of converting a mobile home (referred to in the bill as a manufactured home) to real property for purposes of securing a mortgage (Senate Bill 1277). Unfortunately, this law has been held up in the Illinois legislature for political reasons.

Under current law, it is possible to secure a loan with a mobile home as personal property. The Uniform Commercial Code states that a security interest in vehicle covered by the Illinois Vehicle Code can be perfected only by complying with the requirements of that law (provided that the vehicle’s certificate of title is issued in Illinois). 810 ILCS 5/9-311(a)(2). Under the Vehicle Code, a security interest in a vehicle is perfected by “delivery to the Secretary of State of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the lienholder and the required fee.” 625 ILCS 5/3-202(b). And, the bank can also obtain a mortgage secured by the borrower’s land, if any.