WWLD? (What Would LONNIE Do??) - Posted by Greg (NC)

Posted by JHyre in Ohio on January 09, 1999 at 05:49:43:

I cannot answer WWLD, but if you provide the equity in the MH and/or downpayment + term of the loan, he can better answer your question.

WWLD? (What Would LONNIE Do??) - Posted by Greg (NC)

Posted by Greg (NC) on January 08, 1999 at 17:29:15:

Ok, folks, I ordered Lonnie’s books last week and just finished them (good stuff!). Anyway I have found a MH for sale for $500 and then take up the payments with the finance company. Here’s my question: HOW do you deal with a finance company?? Here’s the stats on the MH: 1989 Craftsman, 14x80, 3 BR 2 Bath, he is taking the stove/range but fridge is staying, aslo ne’s taking the washer/dryer. Seller bought the MH for $12,000 a year and a half ago thru a finance company. He’s paying $146.70 per month plus $100 per month lot rent. I called the finance company but the agent in charge of the account is out until Monday. Am just wondering how to work out a cash deal with the finance company for a good deal. BTW, MH is not in the best shape and IMHO is NOT worth $12,000!

Re: WWLD? (What Would LONNIE Do??) - Posted by Lonnie

Posted by Lonnie on January 09, 1999 at 06:50:43:

Hi Greg,

You first need to know the lien balance and what the home will sell for. Don?t know your market, but if the present owner paid $12,000 (which sounds like full retail) 1 ½ years ago, I doubt there?s sufficient equity for you to assume, resell and have enough spread.

Don?t pay the seller anything until you talk with the lender. Most loans can only be assumed if you “qualify.” That means fees and loan cost for a new loan.

There?s a good chance the items the seller is taking (fridge etc) belongs with the home and is part of the security agreement. Check with the lender.

From what you say, this doesn?t sound like one to cut you r teeth on, unless you could buy the lenders note at a deep discount. I suggest you look for a private seller and follow the book for your first deal. There are good deals to be had with banks and repo companies, but get some experience first.

Good luck,