NEED HELP!!!

redtboa2 profile photo

im a new invester, just getting started, and working on my first two deals on sf houses. i know MH are a diffferent ballgame. but i got a lead from my mortgage broker today about a lady headed towards foreclosure, the rough numbers sound good to me, but i have no idea what to do with them. your input would be appreciated.

28x40 double wide 1989 champion
fmv=47,000
13000 owed on it
monthly payments of 250
6 mths behind on payments

i just tried calling, and couldnt get ahold of her. does anyone have any suggestions with the numbers i have so far?

eric

Comments(7)

  • Steve-WA2nd April, 2004

    FMV is a little exaggerated - where did this come from? I'd bet that homes in parks do not comp out this high - perhaps land/home, or new homes, but not an 89 DW.

  • redtboa22nd April, 2004

    as i mentioned i am new to mobile homes. i got this value from the mortgage broker who wasnt able to help her out. he gave me her name and the numbers that i qouted above and he said 45.50 per sq ft was a safe number to use to determine the value of it. i just took his word for it. i tried to contact the owner, but i have not as of yet, so i dont know if its on her land or in a MH park. as soon as i get more details i will post.

    thanks for the input
    eric

  • swagman2nd April, 2004

    MH's are too scary for me! I know people that make good money on them though.

    A MH is a depreciating asset. There is no chance that a 89 mobile home is worth 47K without the land. You ought to be able to look up the tax number and see who owns the prop. Most counties have websites that list the info.

    Nonetheless, even if the FMV is inflated, sounds like a good deal.
    Good luck!

    swagman

  • redtboa23rd April, 2004

    as i mentioned MH new to me, but i looked in the classifieds to see what they were going for in this area. and i agree with the above, there is no way it could be worth that much. i couldnt get a hold of the lady yesterday, ill try again today. and keep this board updated. please cont to leave feedback

    eric

  • JohnLocke3rd April, 2004

    Eric,

    Glad to meet you.

    The Bible on Mobile Homes values.

    http://www.nada.com/

    Always use wholesale value when negotiating less any work that needs to be done on the unit.

    John $Cash$ Locke

  • loanwizard3rd April, 2004

    Is it on it's own ground, or is it in a rented park, or on a rented lot in the country? I would find out if the owner of the ground will play ball first. If they will not work with you, you are out of the game unless you are willing to go to the expense of moving it and have a location for it to go to. As far as value, if the ground is workable as far as the landowner goes, I would be all over it. $3000.00 and taking over payments, or $13,000.00 cash and you have a nice cheap rental, or you could sell it and sell it for $29,500.00 @ 12.75% interest (industry standard) and create a nice little cashflow. Or you could roll the dice and buy it at the sale if the value isn't there. Or if the lender buys it back, you could buy it from them for less after a period of time. For true market value in your area, call 3-4 MH dealers and ask for a buy figure, or how much they would write a check for to buy this particular make, model, and amenities.

    Good Luck,
    Shawn(OH)

  • redtboa24th April, 2004

    thanks all for the replies!!! , but to no avail. i got in touch with her yesterday and she is in denial. she says she isnt goin to sell and wanted to refinance it. i got her name and info from my mortgage broker who wasnt able to help her. unless she gets a loan from a friend or family, i dont think there is much to be done. as i mentioned before im a newbie trying to get my first deal together so thanks for your input.

    eric

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