need help with selling mobile home
we own a double wide mobile home in a park and it is worth less than what we owe on it. How in the world do you sell it if its not worth at least what you owe on it? The house is very nice we are just growing out of it and would like some land of our own. what would happen if we just walked away? Can they take our new house away from us?
What are you using to gage the value?
If you bought for 40K and you've paid 30K over the years already somebody could give you 10K to satisfy the lender and resell it and make money.
You could possibly do a lease option. Don't ask me for specifics on that ask the more knowledgable LOL!
Just thinking you could get renters easy if you offer seller financing. To totally get you hands off the home you could sell the note (contract with the renter) to an investor at a discount.
You do have options maybe somebody else can fill in the blanks on this one
[ Edited by Future-Multi-millionare on Date 03/14/2003 ]
I looked up the vaule on the N.A.D.A, web site and it said it was worth 23,000 and we owe 31,000 on it.
The park that we live in will not let us lease it. we have to sell it
The nada val means nothing to the creative investor
The value of your home is what somebody is willing to pay for it!
What time frame do you have to sell buy?
We would like to sell it by the end of summer
it is my understanding that mobile homes are like automobiles and they have a "blue book" price that the banks go by.
You have plenty of time!
You might be able to find buyers who can get loan money (30K) the traditional way.
You could put an ad in the paper "double wide need to move asap" and see who calls. There are investors who would love the opportunity to short sell though.
Do a google search on Lonnie Scruggs and buy his Deals on Wheels book for $30 you’ll get in the mail within 7-10 days it will give you some ideas on what to do.
Stacy, I think you may have emailed me already, if not I had someone else with a near same question only hours ago email me.
Anyway, I beleive I have several solutions for you. Some of what has been posted is workable, however I respectfully disagree about conventional loan.
One of the reasons I as an investor have an investors market in my area is because lenders arent lending on used mobiles, in fact they arent lending as well as they used to on new mobile homes.
So creative financing is the way to go and you could actually even put cash in your pocket at the same time.
Email me and I will gladly shoot you my Ph#.
Mark
In what State are you? I know a guy who owns a Mortgage company, who does almost exclusively mobile home mortgages and he has branches in most States.
Send me a private e-mail if you want with the particulars and I will run it by him on Monday to see if he could finance it for any buyer you can get.
What state is your friend in, is He also in Oklahoma?
I would might like to throw some business his way if He does MH's especially used ones.
In my area its like pulling teeth to get them done. IN fact over 60% of the MH dealers have or are going out of business in this area because lenders wont lend!!!
One dealer here I do business with told me He used to average 5 to 7 out every 10 through his lenders. But now He is lucky to get 2 or 3 and that is on new homes.
Used homes... well... nuff said.
But if He is willing, I have business out of Oklahoma I could throw him. Let me know
Mark
Stacy, tell me a little more about the MH (Year, Make, Model, Size, Bedrooms, Amenities). Book Value is a guide and is almost always skewed toward the high side. Bottom line is that if it were a deal, you would have people knocking down the door to get it. That said, if YOU are creative, you can get it sold to someone who doesn't care about the actual value (very small,very desparate market). If you walk away from the home, you have to deal with the ramifications of what it will do to your credit. Recommendation; Sell it via Land Contract. You say the park won't allow you to rent it. With a MH, and I am speaking about SW, a Doublewide may be different, has a title, like an automobile. Sell the thing, collect a downpayment, collect a payment, pay your mortgage and go on. It's an ugly situation, but if you can find a buyer that does not qualify for conventional financing, you can give them an opportunity to become a homeowner.
Good Luck,
Shawn(OH)
thanks for your help
i tried to email you but couldnt i have a
few questions
could you explain the land contract thing a little. What is the SW you mentioned?
And is a land contract like letting someone assume our loan?
it is a 1995 28x52
man: M.H.E.
model: Mansion
3 bedrooms, 2 full baths
cath. ceilings, kitchen-frig., stove, dish washer Seperate laundry room with washer and dryer All electric, central air
shingled roof, 3 sky lights
White vinyl siding Hunter green shutters bow window in living room
still has wheels attached so it can be moved
Stacy
I was thinking about your situation the other day. I didn't mean to come off as jerk in the above post.
Have you contacted any investors in your area? Have you called any we buy houses ads?
You could call an investor and ask him point blank are you familiar with short sales? Would you short sale my home for me? Make sure you tell him I don't want to make any money I just want to walk away from this thing
thanks no i havent done that; i didnt think they'd be interrested but hey i guess its worth a try. THANKS I will try that today and see what kind of response i get.
Can someone do a short sale if we are not in forcloser?
dont worry, I didnt think you were being a jerk in your post
Stacy you are getting the hang of this stuff!
That is a good point you made. The bank has to have a reason to allow the shortsale. There has to be no or very little equity involved. Usually the person is behind on payments (that may be mandatory I'm not entirely sure).
Now I’m going out on a creative limb here for you! If anybody can modify or legitimize this please do LOL! You may have to just meet with you park manager and tell him the situation. Explain to him the negatives of foreclosure and explain to him that you'll be willing to find him another buyer that's meets his criteria and that you will seller finance the person if they can't (since nobody is loaning $$$$$ on mobiles these days) get a loan and if they don't pay you'll cover them. I was thinking maybe you could find an investor to purchase your mortgage from the bank (which can and has been done upteen times nationwide) I may be wrong and illegal as hell with this maybe trade the mortgage for the note or work out something we you can become unattached to the note
Well i have already BEGGED the mortgage company to let someone to assume it and release us from liabilty. they will allow someone to assume the loan but will not release us from it
we really cannot afford to pay two house payments if the new owners were to walk out on it
does anyone out there know if you have to br in forecloser to short sell a house?
Hi Stacy,
If the financing area doesn't work out for you, you may consider a lease option as something to fall back on. Most Parks say that the only people that can live there are the people who own it. The good news is that there is a way around that.
You can quit-claim 1% of your interest in the trailer to the "lease option" candidate that you have selected, and go to the recorders office, and pay then $25 to record the 1% quit-claim. Therfore, the renter actually has ownership in the trailer while they are renting. I would only do this after they have given you upfront consideration for the lease-option.
Now to protect yourself on the back end, here is what you do. At the same time that you sign your quit-claim to release 1% ownership to them, you would in addition, have them sign another quit-claim to give you back the 1% interest. (Dont record the second one yet). You can hold yourself or have your attorney hold the second one. If something doesn't work out or if the renter decides not to exercise their option, you would simply take the 2nd quit-claim to the court house and record this one. (which would override the 1st one). It may sound complicated, but it is a rather simple process. It would be in your best interest to have (at least) the 2nd quit-claim deed notorized.
I would persue all other options before this so that you might be able to cash out. But if the other options dont work out, this is always an alternative. Hope this helps.
ues you are right that does sound complicated
I am scared that all this mess is going to scare prospective buyers off
could you explain the land contract thing a little. What is the SW you mentioned?
SW= Single Wide
You are right. Most investors are not going to pay more for a Mobile Home than it's wholesale value.
A land contract is similar to someone assuming the loan, but your name stays on the existing loan. In effect you are going to let someone borrow your credit to take your problem off of your hands. A win win situation. There is risk involved. The new buyer may not make the payments to you on time. They may do some damage to the Mobile, so choose with care the new buyer. I would suggest a Lease option but I believe you said the park doesn't allow rentals. This deal just depends on your motivation level. It is easier to reposess a MH than to foreclose on Real estate. Check with your local Title Clerk's office for details on that.
Good Luck,
Shawn(OH)
stacy,
Because your Mobile Home is not real property a Quit Claim will not work, because you mobile is titled through the Department of Motor Vehicles or Department of Manufactured Housing.
You can sell the mobile with a Vehicle Bill of Sale, where you and the current lender are shown as lienholders.
Have a seperate note made up along with the Vehicle Bill of Sale, with the terms and conditions you reach with the person buying your mobile.
Show the Vehicle ( Mobile Home) Bill of Sale to the Park Manager this will suffice as evicence that the mobile was sold.
I your buyer defaults on his note to you, as Shawn said it is very easy to re-possess.
John $Cash$ Locke
Hi $Cash$
Thank you for bringing up that point. I should have remembered that Mobile Homes would not be considered "Real Property".
[quote]
[ Edited by eunice on Date 03/27/2003 ]
On 2003-03-26 08:52, stacy wrote:
it is a 1995 28x52
man: M.H.E.
model: Mansion
3 bedrooms, 2 full baths
cath. ceilings, kitchen-frig., stove, dish washer Seperate laundry room with washer and dryer All electric, central air
shingled roof, 3 sky lights
White vinyl siding Hunter green shutters bow window in living room
still has wheels attached so it can be moved
[/quote]
Would you be open to the possibility of a rent to own situation to resolve this matter. Please read my posts, as I am looking for that type of opportunity to secure a secure future for my children. I have a 3500.00 down payment, and the balance needs to be carried by the seller as monthly rental payments till it is paid in full, in the range of 600-750 per month. If it is worth less that you owe, please keep that in mind to the amount of monthly payment you desire. GOOD LUCK! "I am not" a freshman investor as it seems to have posted me to be somehow
With all due respect, this is very simple.
Your home is worth as much as the highest offer.
With that being stated, you can enhance the sales price of your home by finding someone who would be willing to purchase on a private sale contract, and by structuring the contract correctly for sale in the future, should you choose to.
Hope that helps
Harry
hi thank harry
but could you elaborate a little on a private sale contract
is that the same as seller financing?
exactly how would it work?
Stacy,
Talk to a local Real estate attorney. They can explain in detail exactly what a land Contract, or more correctly in this situation, a promissory note is and looks like. Basically you will be the bank. Place an ad in your local paper that says "Owner will finance" No Banks! 1999 Mansion (describe the home) (xxx) XXX-XXXX
See how many calls you get. You are looking for someone with stable income and a downpayment. We can help you with the paperwork.
Good Luck,
Shawn(OH)
Stacy,
Terns
$ xx,000 @ 12% ( standard rate )
Over 4-7 years
Also consider writing in some kind of recourse
" If more than 10 days late on any month, a 3 day Pay or Quit Notice WILL be issued. Upon the issuance of the 3rd notice, you WILL be evicted, and all equity until that time will be forefited."
This will help make the note more saleable in the future, should you decide to sell the note.
Hope that helps
Harry
Try not to think of this as a problem, but rather as a chance to help someone who might not be able to get a mortgage to buy a home of his/her own. There are many people in this country can can afford to overpay for a home, but they do not have the credit history needed to get a mortgage. As some others have already said, a lease option is the way to go. The lease-option is 2 contracts; a rental lease and an option to buy (forms can be found free at many websites, I use russ whitney's). Try to get $1,000 to $3,000 (maybe a cash advance on a credit card) and a certain percentage of the rent each month is applied to the down payment. This could be anywhere from $25 to $100 per month and ,of course, the more that is applied to the down payment, the better. Here is Florida, most lease options are for three years. So, if you got $2500 down and $50 per month toward the down payment, at the end of three years there is a non-refundable down payment on the option to buy of $4300. If the buyer does not pick up the option, you resell and keep the $4300. If they buyer does pick up the option, you are a big help when it comes time to get his own mortgage. He has a 3 year payment history and a down payment. It if it at least 10% of the purchase price, that is great. Of course, during this time you are charging 10 - 16% interest. If at the end of 3 years the person still cannot get a mortgage, but has been an excellent tenant you could choose to extend or redo the lease option (no problem, they are paying off the mortgage). To get around the no renting that we run into in MH parks, include in the contract that the person has a 1% interest in the MH for 1% of the purchase price. This can also be done without the lease-option if you just want to rent, but ownwers take better care of the property. Good Luck.
Joee