Posted by ScottS(NC) on September 19, 2003 at 10:45:11:
Doc,
Clear as mud I know lol. What I am trying to say is that if there is any excess money (over the amount of repairs) the buyer is intitled to it not the lender. The lender recieves the amount owed in full and thats all not a penny more. The buyer would get anything above that. So my point is why insure for more than the place is worth on Lonnie deals because you are just giving the buyer the rest any way. There funds are purchasing the policy even though I make the payments for them. Signed: Still Muddier? Comprenday? LOL Take Care ScottS(NC)
The hurricane and the mobile home business - Posted by Tonya_VA
Posted by Tonya_VA on September 17, 2003 at 21:07:53:
Hurricane Isabel is coming tomorrow. I can’t help worrying a little about what this will do to my mobile home financing business. I sold 8 mobile homes. The owners of 6 of them actually got mobile home insurance.
Next time, no one moves in unless they get insurance first. No exceptions.
Today the city issued mandatory evacuations for those who live in mobile homes.
Anyone else in the Hampton Roads area with a mobile home business? Do you feel the hurricane will have an impact on your business?
Re: The hurricane and the mobile home business - Posted by ScottS(NC)
Posted by ScottS(NC) on September 18, 2003 at 09:17:21:
Tonya,
Its simple really for the homes that are insured relax if its destroyed you will recoup provided you put enough coverage on them. As for the mobile home business, homes will go back into each and every spot taken out by the hurricane so don’t sweat it.
This is a prime example of why I collect the insurance premiums in the monthly payment! I then make the payments in my buyers name for them each month. This is the ONLY way to guarantee each month thoughs premiums are being paid. Take Care ScottS(NC)
Tonya,
Obtaining and maintaining insurance should be a condition of your agreement with the buyer. They should have insurance (preferably paid for a year although that’s not always possible) before they get a key with you listed as lien-holder. If they let it lapse you would get a notice and you can act on that (sheriff knocking on the door to serve notice of default papers usually gets their attention). You need to control these deals and service the agreement AGRESSIVELY. Who do you think will suffer if the worst happens (fire, hurricane). It won’t be them I assure you.
Get on the phone with these people TODAY and kick some a$$. As a practical matter, I’d bet that no company will sell you insurance until after the storm passes but after that, tell them if they don’t pay (as in insurance premium), they don’t stay.
All the best, Lyal
Re: The hurricane and the mobile home business - Posted by Rikki
Posted by Rikki on September 18, 2003 at 17:22:09:
Speaking of insurance, how much coverage do you place on your mobiles? I put $20,000 coverage on the one I rent out (I paid $3200 for it). Any good formulas to use to determine how much coverage is needed? I personally took out dwelling coverage to protect myself and told the renters they have to get their own renters insurance. Is this not the thing to do? And speaking of hurricanes, the eye is passing over us as of this moment. Trees falling, wind and water everywhere. Electricity is out (generator working though
If you are properly insured for the amount of the loan and hurricane wipes out the mobile home, WONDERFUL. You get cashed out by the insurance company NOW instead of having to wait 2-3 years to get your money back. Your rate of return goes through the roof, if you still have a roof, so what is the problem?
You just insure properly, using your buyer’s money and pray for a hurricane.
Re: The hurricane and the mobile home business - Posted by ScottS(NC)
Posted by ScottS(NC) on September 19, 2003 at 07:20:33:
Rikki,
The policy will be in your buyers name not yours. Several people here think you can just pocket the difference between your payoff and the buyers settlement. Any excess money goes to the person who’s name is on the claim(your buyer). This is the reason I set up policy’s with enough to cover demolition of the old home disposal purchase of a new one and set-up. Any more than that and you by law must give it to the buyer. I carry between 10-20k on singles depending on replacement costs and 25-40k on doublwides. Now on homes I rent I carry about 20-50% more becuase this would all be my money. I also collect the premiums for my buyer in each months payment and pay the insurance myself to be sure it is always in effect. Take Care ScottS(NC)
