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.