New Program Helps Victims of Fraud

The California Department of Housing and Community Development has begun accepting applications for a new program aimed at helping mobile-home buyers recover losses resulting from seller fraud or failure to honor warranties.

The new Mobile Home Recovery Fund will reimburse qualified buyers for certain types of out-of-pocket losses. Victims can receive up to $40,000 if they bought a new mobile home, or up to $20,000 if they purchased a used mobile home.

To be eligible for reimbursement from the fund, an applicant must:

--Have purchased a mobile home for residential use on or after Jan. 1, 1986;

--Sued the seller and obtained a final civil judgment for fraud, failure to honor warranties or willful misrepresentation;

--Made a reasonable attempt to collect on the judgment, or shown that the seller is insolvent, and

--Filed a claim with the Housing and Community Development Department within one year from the final judgment against the seller.

Money in the fund, which currently tops $500,000, comes from a one-time assessment of licensed mobile-home dealers and sales agents and a $10 fee that’s attached to each sale of a new or used mobile home.

Application forms and additional information can be obtained from the Housing and Community Development Department, P.O. Box 31, Sacramento 95801.