Selling MH to bad credit person - need advice - Posted by Paul Stryer

Posted by Michael on September 11, 2003 at 15:53:10:

You obviously have great concern for getting your extra $1,000. Justifiably so, I would say. Hubby Bubby doesn’t give a rat’s rump about paying anyone else, why would you expect him to change his ways for you?

Either get $6000 up front, assuming that if they can afford $ 5K down, they can come up with $ 6K too; or, get some other collateral that meets or exceeds $1K in value (cars, tools, guns, etc.).

With a lousy credit history like you describe, you aren’t going to get your $20K. Face it. They will either file BK or force you to repossess. Either way, if you have your $6K down, or some other concession, it won’t hurt so bad.

Can’t help you with your other questions. Can’t even fake it there.


PS: Hope for a repossession. At least you can re-sell the home!

Selling MH to bad credit person - need advice - Posted by Paul Stryer

Posted by Paul Stryer on September 10, 2003 at 21:23:46:

Need advice on how to handle this situation.

I have a 98, 14x70 Referbed Repo that I paid 6K for, and have a husband and wife buyer. The wife has good credit with one repo of a motorcycle and is a stay at home mom. Her Husband has a job at $15 per hour for the past 3 years, but his credit is really really bad. Repo, no pays ETC…

BUT They have agreed to buy the home for 20K with a $5000.00 down payment. Any my mind can not get past the 5K they have to put down, I don’t want to loose that money. With the money down I will only be into the house for 1K

Here is my concern:

  1. If I do sell them the home, what happens if some where down the road they file bankruptcy. Do I loose my home and note? or do they just have to pay less per month until it is paid off. They did not talk about having money problems ETC but BR was a thought in the back of my head

  2. Can I get around any Bankruptcy issues if I do a lease to own with a 5K down payment, If so is there a differnce between Rent-to-own and lease-to-own or is it just two terms for the same thing, and if they are differnt which one should I use.

We have asked them if they have anyone else that would co-sign with them if we just sell it to them with a note.

Are there any other concerns that we should be thinking about

or should we just forget about this buyer and their 5K downpayment and move on

thanks for everyone’s help

Paul Stryer

Re: Selling MH to bad credit person - need advice - Posted by Phil Pelletier

Posted by Phil Pelletier on September 12, 2003 at 01:00:24:

In my opinion, you have a dream contract in the making. With the age of the home (nearly new), you have a box that you can resell and resell, and resell, practically forever. Most folks in this market have poor credit and very little cash. You have hit upon the dream person to sell to. Let me explain: With poor credit, their options for decent living quarters are limited. Making $15/hour with a stay at home wife and kids, means it took him a LONG TIME to save that $5,000. He is not likely to give up that kind of cash on a whim. The very fact that his credit limits his options for a decent landing point after an eviction means he will place you FIRST every month to protect his interest. I always look at someone’s income and ask “How long did it take them to save their down payment?”. If it took only a month (High income), then you might be looking at a walkaway in the near future, because they really are leaving nothing of value behind. Your guy would have to leave probably 2 years savings behind, and then walk into the teeth of a tough rental background check for even the worst of places to install his family.

Take the $5,000 and roll the dice. It’s a dream contract, in my opinion.

Phil Pelletier