Mobile Home Note/ Paper Question - Posted by Clint

Posted by Rich[FL] on October 27, 2003 at 12:21:54:

Clint, there’s not enough information here to evaluate the note.

  1. What are the original terms of the note? Amount? Interest rate? Term?

  2. You say that 40 payments have been made - does that mean that the original term (length) of the mortgage was 124 months?

  3. What is the $7000? Is it the present value of the note remaining to be paid? Is it what the note is being sold for?

  4. What do you mean with the information: credit lesee/100 per month??

  5. You say it is seasoned with 40 payments having been made; were any of those payments late? If so, how late?

  6. Is this a note on a MH only? Or is it a MH/land note?

  7. How credit worthy is the payor? What’s his credit score? What does he doing for a living?

Answers to these questions will help you understand what the note may be worth.

Hope this helps,


Mobile Home Note/ Paper Question - Posted by Clint

Posted by Clint on October 26, 2003 at 13:41:56:


For Sale: Mobile and existing note cost:

Note: 84 months @ $300/ month
credit lesee/ 100 per month

Note Value: $25,200.00…

Oh, and it is seasoned with 40 regular payments already!

Does this make sense to buy?



Total Payments Isn’t Note Value! - Posted by David Butler

Posted by David Butler on October 27, 2003 at 14:07:13:

Hello Clint,

In addition to the helpful input Rich provided here, including pointing out that you have offered some conflicting terminology that makes your situation a bit unclear - your concept of note value is off target! Be sure you understand that the $25,200.00 figure you gave merely represents the total of payments to be received over the next 84 months, at $300 per month.

That number by itself has little to do with the actual “value” of the note as a financial investment - though it generally would have some bearing on “alternative investment analysis” of a given note deal, as oppossed to another investment available to the same buyer at the same time.

Also, you state that For Sale is “Mobile and Existing Note”??? That would be be two unrelated items being offered for sale??? Can you clarify what you mean by that, along with the other questions Rich had? That will help you determine what you’ve got here, and whether or not it may be a “good” investment or not. Good hunting…

David P. Butler