I can not imagine any home from 1972 selling (I mean actually changing hands) for that kind of money. Lenders will not touch a home that old and there is a reason. In my opinion, that home is a time bomb waiting to go off and the lender holding the note will probably have a serious problem, unless, of course, the lender is a person (say, you or me or Lonnie Skruggs!) who bought the place for what it is really worth in cash in today’s market (about $3,000- 4,000 TOPS, in my opinion). The main question is how long has the guy paid on the loan (not long, I suspect, based on the note balance and the age of the home), and how willing is the lender to discuss their REAL position with an outsider (you). Their postion is one of extreme trouble, as they will pay rent on tha place for a long time after a default on the loan. However, it doesn’t sound like the current owners are going to default if they have been trying to sell it for a year. Are they living in the home?
The only advice I can give you is if you wait until the home goes into default, the ground rent usually starts to back up and the park wants that in cash prior to any resale of the home. That only increases your over all cash outlay as well as exposes the home to a ton of other hungry Lonnie Type dealers when the home appears on the lender’s Hot Sheet. I would ask the owner to contact their lender and authorize you to discuss a possible short sale with them. It may take a while to establish a repore with the lender, but it is always good to converse with professional individuals in this market. Even if you can’t make a deal, you can learn a lot from the lender about what it would take to make a deal and this may prepare you for the next time you are in this situation.
I’m looking at a 3 bedroom 2 bath unit - any thoughts on what its worth??? Pretty decent shape, I’m told. She started at $8,000 & gave her the old “what would the lowest price you would take for all cash & a quick close”?? She went right down to $6,500. The problem with this one is there is a $3,000 real estate lean on it, so I can’t steal it… BUMMER
I recently “locked up” a three bed/two bath 14x70, 1979 home that had a lean on it. Current owner needed $9700 cash 30 months ago and went to a “finance” company and did what I call a “Title Pawn” for 18% interest over 60 months. She has paid $243/month for only 31 months of the note and still owes $6400. I told her the home was worth between 2-3K to me in cash and she had her mother call me negotiate the difference between what she owed and what the place was worth to me in cash.
Good ol’ mom came to the rescue for her daughter and made a nice opportunity for me. Now I can pay off the Title Pawn company with a combination of my money and mom’s money, I get the home, she is released from the obligation, and she can pay her mom back at her leasure (which is usually never, but that’s not my problem).
Moral of the story is: When someone finally realizes they have a liability and not an asset in one of these places, deals can happen even when you least expect it.
Offer her $500 on top ofwhatever you can work out with the company that is currently holding the lien. When they are informed they will have to pay ground rent on the home if she abandons the place, they may negotiate a lower cashout amount and give you the title, which I assume they hold.
Just some thoughts for creative negotiating. These in- park mobile homes are real hot potatoes for lenders. NOBODY wants them after they are abandoned, so that threat may make them deal on the lien amount.
I’m gonna have to decipher your post a little more to see if it will work on something I’m looking at and/or if you have any other ideas about it.
1972 Shuld(sp) 14x70 3bd 1 1/2 bth. Large screened-in porch, full bath re-done, appliances included, and just drywalled the house. They have had a FSBO sign in the window for at least a year, and now have ads in the paper almost daily(last ad said “Modivated Seller-Moving”) with open houses almost weekly.
I went though the open house a few weeks ago when selling for $16,300. It is in great shape and in a very nice park(nicest in area). Just got off the phone with seller who said her job transfer is the reason for the sale and they are now asking $14,900. They also owe $16,000 which they said they would pay the difference.
Anyway should I do as you suggest? Should I call the seller back to see what if anything can be worked out with the lender? Or do I keep circling like a vulture until it’s repo’ed and get it that way?