trying to help PM with their own financing.. - Posted by J.R.

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Tony-VA on July 08, 2002 at 11:32:10:

You will meet a lot of people that you wish you could help but their previous decisions will not allow you to do so. The owner of this home paid retail and now has a home that she owes $24k on but it is only worth about $15K retail.

She naturally wants the home out of her name but there is that little problem of the home being worth less than is owed.

She has limited her exits down to nothing. She is not likely to find another bank willing to lend on that home for what is owed. From what you are told the bank is not willing to work with them (but I rarely take the homeowner’s word for this. Remember they only understood enough about business to get themselves into this hole).

You may be able to help the park manager find another home in the near future. If that park is of any size, there is a good chance that a bank will end up having to repo a similar model year home or newer.

If in time you develope a friendship with this PM, the best gift you could give them would be to show them how they can use money more wisely by investing in a repo if they like, or in one of the homes that you buy. But they would have to understand you need to make some profit. Cutting a bit off the profit on one home for the PM is not a bad idea.

Tony-VA

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trying to help PM with their own financing… - Posted by J.R.

Posted by J.R. on July 08, 2002 at 11:02:35:

I am working with a park mananger living in a home owned by her sister but the sister wants the home out of her name. The bank will not allow an assumption of the installment loan nor will they sell the note to a third party. The park manager would have a difficult time arranging financing for this home and would also have to pay sales tax at 5% on a home she has been making the payments on for the last 3 years. If the bank would allow an assumption the only expense would be a $15 title transfer fee. I don’t have the finances to purchase a 1996 16x80 with a $24,500 payoff and carry a note. The home is in excellent conditon both inside and out.

The owner really wants the home out of her name but may settle for a vehicle which will reduce her liability and require the payments to be made by the current occupant.

Thanks in advance for any tips. I have only known this PM for two weeks and she has already given me the names of 6 people needing to sell.