options for getting out of mh and moving up to a real house
We own (bought brand new) a 1999 Palm Harbor 16 x 80 mobile home located in an Oklahoma trailer park. We have never missed or been late on a payment but have barely even scraped the surface of the principal and basically owe only $1000 or so less than the original purchase price 4 years ago (just under $40,000). It is an investment we wish we would have known better on then. We would not have done it.
We have fairly good credit. And we make decent amount of money, would need to get a little savings for the downpayment as well as cut back on some credit card balances but would be able to take care of that within a year or so.
We are starting to want to buy a permanent home. What are our options? We do not want to rent or lease the home. Are we stuck? What kinds of options are there for us in this situation?
Thank you, if you need anymore information let me know.
Let me clarify, we want to buy a permanent dwelling (brick and mortar type) but are not interested in renting or leasing the mobile home. There is no way we are going to get $40,000 out of the home. Anyone know what we can do? Are there mortgage lenders that will take it as a trade in?
Thanks again!
good luck we are in the exact same situation
we ahve not been able to find a way out we feel stuck
we've tried and tried to get rid of it
one person wanted to move it and then found out how much it cost to move a double wide and backed out at least yours is a single wide they are easy to move
hope you find and answer i will be checking back to see what people say
If you don't want to rent the MH or sell it on Land Contract, you have atough situation on your hands. I know that's not what you want to hear, but it's the truth. Why don't you want to sell on Land Contract? At least then you could move on and perhaps buy a stick built home. No mortgage broker is going to take the home as a trade in. They only find you money for RE purchases. You may get lucky and find an investor that will take your trailer in on trade, but you will take a depreciation bath.
Good Luck,
Shawn(OH)
Where are you located in Oklahoma?
I am near Claremore, Oklahoma.
Friends of mine are looking for a trailer like yours, maybe something can be worked out.
Ladybug
Stacy,
If you choose to sell on a land contract, let me know. I am a Note broker who is specializing in M/H with either land or no land.
If written correctly, the note can be sold at the close.
Let me now.
**Please See My Profile**
Harry[ Edited by appraiserman on Date 06/19/2003 ]
A land contract is probably the best way to go. Run an ad that says something like "$1000 Down, $500 a monthly, No Qualifying nice 3 bed/2 bath doublewide, call xxx-xxxx. Set the monthly at an amount at or above your current payment; pocket the downpayment. Amortize it over a term that leaves the payment near your current payment; have a 2 year balloon on the installment contract. Your lender will likely treat the income derived as rent and will use 75% of that amount as income for purposes of qualifying for a new loan for your (brick and mortar) home.
I feel dumb...but what is a land contract? How can I sell with a land contract if I don't own the land?
For Ladybug...we are in Edmond.
One more question. Our lot rent is over half the cost of our mortgage because it has increased every year we've been in the park. By the time we add the lot rent to the mortgage we are talking over $500. If I do decide to rent, what type of rent do you all think is fair? How do I rent it out, still be able to cover the mortgage and the lot rent and have money for repairs? Any ideas? Sorry if I'm a pain, I'm very new at this.
Okay, bear with me again. I did a little research on the land contract idea. I guess what you are referring to is to have someone assume our loan.
I must say there is fear about that because while our mortgage loan is assumable, we are still 100% responsible. So if the people bug out, or just leave or quit paying, I'm still stuck with two mortgage payments. Same thing with renting. And the risk with renting is that you have a higher rate of destruction from renters versus buyers, is this an accurate assumption?
If I'm way off base here, please explain further. Thanks
Karlanee:
I meant land contract as a generic term. Try to sell it on an installment contract, that is, you will finance the property to the buyer and they will get the title to it upon payoff. Because you don't own the land the contract will be in the nature of a sale of personal property. You might want to take a look at, or have your attorney take a look at, financing the property on an installment contract. I think there are UCC forms for that (Uniform Commercial Code).
Karlanee:
The fact that the underlying loan is assumable is a major plus. While you are correct that you will still be responsible on the loan in the event of a default, so will the new purchaser. Under an assumption both the new purchaser who assumes the loan and the person who originated the loan (i.e. you) are liable for repayment. You can protect yourself by doing one of two things here: 1) ask for a release from the bank once the assumption is complete. In legal parlance this would be known as a "novation" where the bank agrees to release you from the obligation of repayment and look only to the new buyer. The bank may or may not agree to this. The other option would be a separate agreement between the parties where you would be notified in the event that the purchaser fails to make the payments thereby giving you the opportunity to cure any default. Use of a loan servicing company might help in this case since they will be collecting the payment's due from the purchaser and sending them to the bank on your behalf. They can let you know as soon as there is a default.
Ideally you could sell your mobilehome outright. However, it has been my experience that without a "sweetener" mobilehomes tend to languish on the market for months and months. Absent an outright sale (cash or loan by purchaser) this is one way to get it sold (albeit not the best one).
YOu can also try to be a landlord but I would chose the above option over this one.
J
Karlanee,
Under Mobile Homes, I posted a reply to :
"Need help with selling a mobile home" (stacy) that you might be interested in.
good luck,
Joee