Posted by Lonnie on February 23, 2001 at 19:44:19:
Jack, check my post above to Chris.
Lonnie
Loan Payoff… - Posted by Jack-NY
Posted by Jack-NY on February 22, 2001 at 14:05:07:
I have a home for sale, it’s a 1978 2/1 I have a $5100 payoff remaining on the loan. My asking price is $8500. I have a couple who is interested in the home. They have $2000 for the downpayment. However they have been turned down for a loan on this home. Reason; Time on the job, and insufficant credit history. Can I just have them take over my payments without the bank knowing, or should the bank know this. Please advise asap. What else can I do to make this deal work?
Jack-NY
Re: Loan Payoff… - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 23, 2001 at 07:11:08:
You can just let them take over payments on the loan without telling the bank, but that is very dangerous. Your name is still on that note. Suppose they don’t pay. Your credit is trashed. Not theirs.
Most MH notes have relaxed assumption criteria, so the buyers should be able to assume the note and the bank would agree. The bank doesn’t want the MH back, they just want someone to be on the hook for the payments.
You say your asking price is $8500. If you could come down to the payoff plus $2000 or $7100, you could take the downpayment in cash and let them assume the note. Or if you can’t live with that, take the $2000, and write a second note for the balance of $1400. You would not be able to sell that second for cash now, but it wouldn’t be a bad little cash flow to hold for yourself. Just make sure the payments on both notes with the lot rent are affordable.
Good luck on your deal.