What's the best way to get rid of our mobile home? - Posted by Jenni A

Posted by Steve-WA on April 07, 2006 at 11:15:15:

well, because of obvious distance issues, I am not your man.

But an observation: park does not allow contract sales? Well, isnt that what you are in now?

interesting - how can a park not allow contract sales - weird

What’s the best way to get rid of our mobile home? - Posted by Jenni A

Posted by Jenni A on April 07, 2006 at 10:00:00:

I know the home is worth less than what we owe on it, and we’re prepared to take a loss on it… At this point, we just need it out of our names, and take the loss. Any ideas of where I start with finding someone to take it off our hands?

We have a 99 Skyline Lexington 28x80. It’s in a park on a leased lot, and we’ve got an offer pending on a new home out of town. Husband is being transferred and we’re looking for a way out of this house that won’t hurt our credit!

if it was me… - Posted by Marty (MO)

Posted by Marty (MO) on April 07, 2006 at 15:49:27:

If I wasn’t moving horribly far away, I’d find land to buy and set the home on a foundation. You could refinance at much better terms than Greentree and your credit would improve instead of take a costly hit. you could then install carpet and you’d have a new home again.
good luck,

ways to get rid of our mobile home? - Posted by Tony Colella

Posted by Tony Colella on April 07, 2006 at 10:29:54:

Jenni, while this type of situation is not one that most investors would be interested in, I will try and give you some insite as to why and what may help you.

As you wrote, in many newer homes, the sellers owe more than the home is worth. People buying homes to live in area always willing to pay more, thus Retail.

Investors have to buy wholesale in order to make a profit. When you owe more than wholesale and retail, then there is little they can do to help.

When the seller ownes both the land and home then some of the more creative investing teqhniques such as “subject to, sandwhich lease option, short sale etc.” can be potential problem solvers.

Two things create the difference between investing creatively in real estate and mobile homes. With real estate, the investor can use techniques such as “subject to, short sale, sandwhich lease options etc.” to control the property and more importantly the Deed to the property. With mobile homes, the Title is held by the lienholder, not the buyer/owner of the home until it is paid off (if it were paid off then you would not have this question or problem).

Second, the investor (and homeowner) takes greater risk when they invest in a home that sits on someone else’s land. Park owners and managers can change or change their minds and create problems for the resale of the home for profit.

The owner/seller is left with only a few options, some of which may not be practical or affordable. One would be to move the home to land of their own and either continue to live in it or rent it out. Probably not practical for many because this requires the ability to purchase the land and to be honest, the cost of moving a doublewide such as yours is not cheap and requires cash to pay the mover.

You could try and sell the home on payments to someone else but this can get a bit sticky since you do not have the title and your lienholder could (though not likely) call the loan due. This would not be someone paying the payment to the bank for you. It would be similar to a “wrap” in which your buyer would pay you and then you would pay the bank to be certain that the payments are made and your credit remain in good standing. The problem here is that if your buyer stops paying you still have to make the payments and try and evict them, make repairs and do it all over again.

You could have someone apply to your bank to assume the loan. BE CERTAIN THAT YOU GET A PERSONAL RELEASE FROM THE BANK/LENDER if you do this. Do not allow your buyer to assume the loan if your name is still on it.

You could call the bank and ask to volunatarily give the bank possession of the home if they will release you from the loan. You will have to be talking to someone of high authority within the bank/lender. Not everyone can authorize this but those who can’t may be quick to tell you no.

You will need to explain that if the bank does not take the home back then you may be faced with them having to legally repossess the home which will take them time and money. Right now the home is in good shape and they will have no loss of time. The could get the keys tomorrow and start marketing it now. Otherwise they will have a vacant home which may be vandalized and a park owner that will not be happy about the unpaid lot rent after you move out.

Lastly and in my opinion the better option is to rent the property (if the park will allow you to. If they won’t explain the above to them). I realize you just want to be done with this home and move into your new home but unfortunately that may not be an option just yet. By renting the home you keep greater control of the situation and can evict easier if things should go wrong. The rental unit can help offset some of your earned income taxes as well. Maybe you have to rent until you can sell for at least what you owe on the home but it may take some time.


Re: What’s the best way - Posted by Steve-WA

Posted by Steve-WA on April 07, 2006 at 10:22:11:

you just landed in the spot where there are people to help you . . . a few preliminary questions:

where are you

how much are your payments, what do you owe, and to whom

how much is lot rent, what is included, and is it current

what is the condition of the trailer, and what is the worst thing I would see upon inspection

will the park allow it to stay, or must it be moved

for starters

Re: What’s the best way - Posted by Jenni A

Posted by Jenni A on April 07, 2006 at 10:53:23:

Not sure if this showed up or not, so I’ll post again.

Home is located in Des Moines, IA
Payments are $631 (ARM)
We owe $70k to Greentree

A few weeks ago, i called a local dealer who told me “blue book” value was $56k… which seemed very high to me. We were expecting a lot less than that.

Lot rent is $350, plus water/garbage. It is current, and so is our mortgage.

Trailer is in great condition, just normal wear and tear. Worst thing about the house is that it probably needs new carpet. That would be the thing WE would do if we were planning on staying.

The park will allow it to stay only if we sell it outright. They do not allow rentals or contract sales in the park.

Basically, we feel like we were taken on this deal, and we’ve chalked it up to lesson learned. We’ve tried finding someone to assume the loan, and no takers after 2 years. We’re ready to take whatever we can get for it, and pay the balance to the mortgage to clear the title up, and put this house behind us.