Posted by Brent_IL on August 16, 2003 at 16:12:13:
If it hasn’t sold after being exposed for eight months, the existing market, i.e., the only true determiner of value, doesn’t think that your mobile home in its current condition is worth $80,000 in cash at this time. It might be worth $79,000 or $7,900, but it isn’t worth $80,000. That?s all there is to it unless you add value to increase desirability.
Non Performing Mobile Home - Posted by Brenda Whittaker
Posted by Brenda Whittaker on August 16, 2003 at 15:13:09:
OK, I have an $80,000 mobile home sitting there for eight months, not selling. The few bites I’ve had, are from people who don’t think they can get a mortgage on a mobile, and were thinking I would carry it all. I could, but with huge debt looming, I’d really like to cash out. It’s fee & clear. I ran news ads, posted a sign out front, flyers in stores, sent flyers offering a cut to realtors and brokers, friends, & aquaintences… It’s a nice 1996 4 bedroom mobile on its’ own foundation and lot - what’s the problem?
Re: Non Performing Mobile Home - Posted by Chuck
Posted by Chuck on August 17, 2003 at 24:07:42:
The truth of the matter is that you have a $80,000 home that’s worth less than $20,000.
Why?
Because several mobile home lenders have gone bankrupt due to the large number of repo’s they had to take back in recent years.
They shot themselves in the foot, and your gonna pay for it in resale value.
The fact that it’s on it’s own foundation and lot is probably the only thing that’s gonna save you. Follow Jim’s advise… he’s steered you right.
Re: Non Performing Mobile Home - Posted by Jim FL
Posted by Jim FL on August 16, 2003 at 17:28:56:
Brenda,
As Brent pointed out, bottom line, if after 8 months of REAL marketing, the home has not sold, the price is too high.
So, you feel it is worth $80k? Why?
Where did you arrive at this?
See, value is what someone is willing to pay for it.
So, if no one has offered you $80k, then it ain’t worth $80k, simple as that.
Can you still sell it for $80k?
Maybe.
If you offer terms.
Oh, but wait, you want to “Cash out”, right?
Good news, you still might be able to.
Offer the home “Owner finance”.
Find someone with half way decent credit, middle of the road would get the job done.
Make sure they have income to support payments etc.
Have a mortgage broker look them over.
When you find one who only has one stumbling block, the downpayment amount, you should have your winner, if they have “Something” to put down.
See what they have for cash on hand, and perhaps anything of value.
You can have them put down their cash, buy whatever they have of value from them, and them have them pay that on the deal as additional down.
You’ll need a paper trail for the money.
You write them a check for the item, take possession of it, and then they plunk that amount more down on the house.
Could be a car, motorcycle, big screen T.V., jewelry, what ever.
People have things they can sell, beleive me.
After they have say 5% down, you create two notes.
One for 80%, and another for the remaining balance, 15%.
Get the deal done, and begin the payment process.
As you do that, market the note.
You might even find a note buyer ahead of time who will fund the note, albeit at a discount to face value, especially with no seasoning.
But, cash will come to you that way.
You keep the second for cash flow, or sell it, but bear in mind, these sell for STEEP discounts.
You will have cash then, just not the full $80k, which the home is not worth anyway, at least for a compareable.
I’m of course assuming here the home will appraise for the $80k?
Otherwise you’d have not set that as a price, right?
Good luck,
Jim FL
P.S. I forgot to mention the item they would sell to you, if so inclined.
Make sure to buy whatever it is for a discount, and sell it after the deal, for more cash.
or
If you don’t want to mess with that, help them find a different buyer.
Pawn shops aren’t great for high dollars, they pay discounts of course.
Consignment and antique shops are a good source sometimes, for potential buyers to liquidate things, to get you cash.
Also a good source to advertise at for sellers…save that for another post though.