Posted by Tim (Atlanta) on January 21, 2000 at 11:57:30:
When the lender talks about a “short sale”, they are talking about selling the MH for less than what is owed on it. What you need from this is a clear title. Right now, the title has a lien on it. Make sure that your purchase agreement has the text guaranteeing clear title to the MH. If I were you, I would check with the lender and make sure that the 5000 along with whatever money the seller can come up with will satisfy the lien.
Remember, you just want clear title. Doesn’t matter how or why the lender gives it to you.
Posted by Nicole_AZ on January 21, 2000 at 11:13:49:
I jump started my REI career last night and started looking in the mhp for lonnie deals ( I have a sfh scheduled to close shortly as some of you might know). Well, I found a mh in pretty good condition. Needs carpet. It’s an '85 70x14, 3/2. The seller lives in MI and has been trying to sell for 2 years. The property is vacant. He is very motivated.
Here is my problem. He currently owes $14,307 (verified by lender). When I told him I wasn’t sure I could even pay half of that he didn’t really balk and say no way. He said he would talk to his parents and see what kind of money he could come up with to pay off the loan.
Later he called me to tell me that the lender was willing to do a short sale and work out the difference between the sale price and the balance directly with the seller. I know very little about short sales. I thought the lender took a loss when they did that and the seller did not have to pay off the balance.
I was considering offering $5000 for the property and letting him determine if he could work out the rest with the lender. With a short sale, do I need to be directly involved with the lender? What do I need to watch out for? Is this something I should get involved with? He told me openly that he REALLY wants to sell this thing.
PLEASE HELP!! Very nervous on this.
Nicole
P.S. Let me know if I left out any important details.
Posted by Dan (NC) on January 21, 2000 at 20:06:47:
The first thing you need to do is get a feel for the market, and that means park by park. They’re not all the same. Is 5K a good deal? I don’t know, but before I bought the home, I’d sure find out. It really depends on what you can sell the home for, in that specific park. Lonnie suggest running a “dummy” ad, and it’s a great idea. Maybe next week you’ll find a similar home for 1K. They are out there. In fact, you’ll probably have people offering you their home for free if you just move it out of the park. Great opportunity for land/home development. If you know your market, and what the home can sell for, keep in touch with the seller. If you don’t know, find out before you make an expensive mistake. Good Luck.