Buyer wants to move home... - Posted by Ryan

Posted by Chuck (AZ) on July 01, 2001 at 02:01:55:

Oops, almost forgot something.

You’d then have a twice-secured note (the home loan and the land deed), that you could sell at a discount for cash, and move along to the next deal.


Buyer wants to move home… - Posted by Ryan

Posted by Ryan on June 30, 2001 at 23:00:54:

I have a strong potential buyer who wants to move the mobile home to some private land far enough away to be inconvenient but not impossible to repossess if necessary. The park doesn’t care if it is moved and probably will require that it is after a few more years. Obviously in this situation an all cash buy would be preferable, but is it doable for the buyer to move it and me hold a note? How should the logistics be handled? Any special provisions in the sales contract? How can I guarantee they won’t move it again until the note is paid off? Thanks.


Re: Buyer wants to move home… - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 01, 2001 at 01:49:15:

Personally, I wouldn’t do this unless you can secure a lein on the land, and only if they have a free and clear title to it. Assumming that’s the case, I’d do it like this…

They sign the land deed over to you. You in turn sell the home on contract with no money down, or half the previously agreed amount.

Add the amount that you were going to charge them for the down payment (or half as the case may be), back into the selling price of the home.

This will generate several additional payments at whatever % you’d be charging them. It will easily amount to several thousand additional dollars in your pocket over the life of the loan, as opposed to the one-time benefit of the down payment.

They handle the moving, set-up and property taxes for the life of the contract. They can do this with the cash saved from the down payment.

Specify in your contract that moving the home, before the debt is satisfied, would place them in default.

When the note is satisfied, you sign the land back over to them for $1.00

If they do default, you can repo the home with virtually no hassles, and would gain the land it sits on with a free and clear title.

Re: Buyer wants to move home… - Posted by Joe C.

Posted by Joe C. on July 01, 2001 at 24:15:22:

IMHO you lose ALL control when you allow a home to be moved onto private land and you are holding a note. Homes can be alot more difficult to move off of private lots. Trees grow in the way that the owner won’t allow to be cut, sheds and fences can be put up; not to mention the added repo cost of a move and set-up.

The only way to retain a modicom of protection is to tie the security for the note to the land as well as the MH. If this is in the form of a second mortgage, be prepared to foreclose and cure the first. If they own the land free and clear and you can get a first you’re in good shape. Other than that, your costs to reposess can eat up any benefit to doing so.

Just my .02
Joe C.