Posted by Fred-Ohio on November 20, 2000 at 13:06:48:
1 Tell the original owner that he is resposible for the note, but if he is comfortable letting Jr. take over the payments on his behalf, that would be up to him. You would still hold him resposible for the note and payments.
2 Tell him that you will take the MH back and sell it to Jr. for $500 down and some adjustment in the price based on what you are comfortable with.
3 Conclude that you can trust Jr., transfer the note to his name and charge a $200 Service charge.
Posted by Karl (OH) on November 20, 2000 at 10:15:42:
Last spring I bought a rough trailer for $3k, sold to for $6k to a guy who put down $1500. He’s made every payment on time so far. He’s getting ready to move, wants to know if his nephew who has been living with him can take over the payments. I’m okay with this. (I really don’t want this trailer back.) They both work at the same horse ranch, the nephew has actually been making the payments anyway. They would like to put everything in the nephew’s name. I told them first to have the nephew fill out a park application, and I would get back with them on the details.
How should I handle this? Should I have the nephew pay down the balance say $500, just to “commit” him to the trailer? That’s what banks do on assumptions. At least I want to be reimbursed for my time to do the paperwork. I don’t mind helping these folks out, they’re both honest and hard working guys. Has anyone else done something like this?