I sympathize too. It sounds to me like the landlord is making money seizing people's mobile homes and then reselling them. Its actually a pretty common predatory situation. Its kind of along the lines of landlords who sell houses on "contract" so that they never have to make any repairs as landlords, but always find some way to take the house back.
I would spend the money to get the permits and completely demolish the home before letting her get her hands on it.

