Posted by marlene on March 24, 2001 at 23:23:56:
Thank you for advice, but I think you may have misunderstood me…there is no loan on the home, we own it free and clear…so obviously you aren’t suggesting the checks be made out to Conseco …
Please advise me (long) - Posted by marlene
Posted by marlene on March 24, 2001 at 19:55:47:
I moved out of my mobile home last fall, got stuck paying lot rent and taxes all winter (390 + 40 every month). You all know all the problems that create motivated sellers… Conseco undercutting you to sell their own repos, banks refusing to finance a mh, etc…I finally decided I had to offer financing to sell it. I paid $15800 for it 3 years ago, which was very much in line with all the homes for sale in the park at that time… While I lived in it, I invested another $2500 in improvements…new carpet, appliances, etc (because I expected to live in it, not sell it). Park manager says it’s worth $20,000…but she’s got 10 others like it for sale at that price, and I suspect she’s “hijacking” my prospects when I send them to her for park approval. Today I got an offer of 2000 down and $500 per month for 48 months. So what’s the problem? Buyer has bad credit (which of course he says is from a past problem now resolved). I saw several of his paycheck stubs, he appears to make about $44000 per year (wife doesn’t work, 2 kids 9 & 15). He says he is currently paying 1100 monthly rent on a duplex, no utilities included. He’s thinking the
lot rent, taxes and payment (total 920) will save him over
200 per month (1100 - 920 - water bill).
Question: I know the quick answer is better to get something than keep paying the lot rent myself. But I’ve pictured worst case scenario: Six months from now I have to evict them, and again I’ve missed the spring-summer selling season, and am stuck with it over the winter. Suddenly taking his quick $2000 and a few monthly payments does not seem so safe … just one winter and it’s wiped out, especially if I spend money evicting them and they damage the property…Soooooooooo, am I too pessimistic; should I go with the deal?
Re: Please advise me (long) - Posted by bama
Posted by bama on March 24, 2001 at 22:07:12:
You should probably go for it. Here’s why.
When the customer makes the payments have them do it by check or money order. Have it made out to Conseco. Conseco doesn’t care who’s in the home as long as the payments are being made.
For 12 months be sure the payments are on time. It might not be a bad idea to take part of the $2,000 and send it in and get a month ahead. After 12 months go to Conseco and tell them you want to do a “transfer of equity”. Basically an assumption.
If you do this right and can prove that your customer has made the payments the t.o.e. is pretty much automatic. Helps the customer too. It gets the loan in his name and helps him re-establish credit. He can continue to make the $500 payments once it is transfered into his name.
Above all, be sure you can prove the customer has made the payments. If you can’t it won’t work.
Sam
Re: Please advise me (long) - Posted by bama
Posted by bama on March 24, 2001 at 22:37:05:
One more thing. If they act like they don’t want to do the t.o.e. simply say “well, I guess i’ll just let you guys come get it”. Thier tone will take a turn for the better. They don’t want repos…
Sam