Selling MH In Park
I have a 96 doublewide in a park that I owe much more than I can sell for, but I really can't afford the lot rent anymore and need to sell. Is it a better idea to try and sell it at the amount I still owe or have someone assume the loan? I've heard allowing someone to assume the loan, however, leaves the original owner still responsible. Is this true? I would rather not damage my credit anymore than it already is if I can avoid it. Thank you for any help!
Thanks for the advice. Can you help with another question? If I try to sell my home myself, where would I advise potential buyers to get financing? Any ideas?
Thanks again!
Apparently you haven't got or read Lonnie Scruggs' book Deals on Wheels. You must do at once if you're trying to make the best decision on what to do, how to do it, financing, etc.
Napolis,
Before you sell your home, you should notify the park owner by certified or registered mail of the proposed
sale. If you do not follow this process the owner may try to prevent the sale of your home.
The park owner will normally have 21 days from receipt of notification to approve or deny a buyer. If the buyer is rejected, the park owner must state in writing under which specific lease terms the buyer does not qualify. If the
park owner does not respond within 21 days the sale may proceed. If the park owner refuses to approve
the buyer and you think this refusal is unreasonable, you should contact a lawyer. The only way to pro-
ceed with the sale may be to take the park owner to court quickly.
Be sure to check your park agreement!
Loan Assumption; means the lender is allowing somebody else to guarantee the loan...but the original signer is NOT thereby removed or off the loan and is still responsible for it.
And YOUR law re the MHP's approval of any resident of that park, how much time they have, etc., is function of that state's laws, and no general rule about how many days the MHP has to accept or decline new resident.
So you need to check, or have your lawyer, check YOUR law to see what it says about how you go about getting a new resident approved by a MHP in your state.
Ask your lawyer to help you sell the MH on a contract of sale, wrapping your loan. This way, your buyer IS buying it from you, but is NOT getting full legal title until you're paid, and you're still paying on your loan.
Most MHPs in our area are used to owners selling their MHs on contracts this way, and so long as they get a chance to approve or disapprove the new buyers, they're fine with this process.
I have had to sit down with, and educate some MHP Mgrs about this, but once I do, and assure them that the new buyer will make formal application to be their new tenant, they normally are OK with it.
Doing it this way, the new buyer pays you each month, you pay your lender, and at some certain point in time in the future, that buyer cashes you out...and then you KNOW the loan is paid.
John Merchant