Not to sound totally negative, but… - Posted by Brandi_TX
Posted by Brandi_TX on March 06, 2000 at 10:05:27:
…if a new MH buyer is turned down by Conseco (or whoever), why would you want to mess with it?
Coming from experience, here is how the typical process works when someone is shopping for a new MH:
Buyer goes to several lots, viewing several homes at each, usually allowing each dealer to pull their credit. The salesman will typically tell this buyer, “We can get this deal done - Just give me a deposit.”, in hopes that they will stop shopping anywhere else. Depending on how many times the buyer has been led through this “dance”, they are excited that they have found a savior in this miracle worker salesman.
The salesman will then proceed by “shopping this buyer” to several banks. Not looking (or caring) if the buyer gets the best rates, oh no, they are just praying for an approval - ANY approval.
If the buyer is a “bandit”, the banks will come back with a “NO WAY”. If the buyer is a “semi-bandit”, the banks may come back with a “YES, but…”. (The “but” being one or more conditions that the buyer must meet prior to an official approval is given.)
Example - Applicant wants a 65k new MH, approval comes back stating they are approved for a USED MH for no more that 45k with 20% down, must supply proof of employment, sign away the rights to their next born child, yada yada.
Anyway, so now this miracle worker of a saleman becomes a martyr. “Mr Buyer, I tried and tried to get you approved for the house you wanted… BUT… I worked real hard and I got you an approval…You can still have a home…”
Assuming this buyer will accept a Repo, and can come up with the 20%, they now have a place to live. If not, the buyer walks… or… (and here is the scary part, Mark) the salesman may get “creative”. He may thinks, “Hmmm, I cannot seem to get this person bought, I wonder if I call Mark if he would fund this? Just to be sure he will, why don’t I just fudge these figures and documents a bit… Yeah, that’ll work”
When this happens, hard tellin’ what you will get. False income verification. A bogus deed to property that doesn’t exist. Copies of back dated checks showing payments made to loans that never happened. The list goes on.
My point in all this is simply to ask: Are you prepared to handle all of this? Even Conseco, a company with resourses and systems to help protect them, has stuff like this pulled over on them. Call them and ask them for a Repo list sometime. Are you better prepared to “sniff out a rat” than they are?
Besides all that, if you have the 45k to loan on just one house, how many more smaller “Lonnie Deals” could you get done with the same cash?
Just my opinion.
NOTE This was not written to imply that ALL MH salespeople or dealerships do business this way. I have just had the unfortunate experience of seeing it done this way - way too many times.