Christmas BONUS??? - Posted by russell

Posted by russell on November 16, 2000 at 21:10:43:

Yes, I was thinking that due to the extra financial demands at Christmas and poor or no planning, that some would not pay and eventually leave or “be left” (evicted). I sure would like to avoid that if possible. I am in the process of evicting my first person, and regardless how much of a deadbeat he/she may be, I just don’t like to have to do that to someone.

Christmas BONUS??? - Posted by russell

Posted by russell on November 15, 2000 at 23:23:18:

This is a question for those of you with mobile home personality experience. I would appreciate your opinions about an idea I have.

I purchased a portfolio of MH notes a few months ago and have learned a lot real fast (hard knocks, etc.). I asked a lady who lives in the park about turnover around the holidays. She said it was usually high. This gave me an idea.

I am contemplating mailing out a letter (actually already written) offering $10.00 cash to all account holders in good standing who pay by December 4th (all notes due on the 1st).

My idea is that maybe there will be enough incentive to possibly get someone to pay who might otherwise “disappear” after spending their money elsewhere. These are less expensive homes - average $7500/small payments. I don’t know the thought process or motivation of these people - have never met any of them - but some are compulsive liars.

On one hand I’m thinking it’s a waste of time and money. But, I am curious if any of you have ever tried something like this.

Re: Christmas BONUS??? - Posted by Karl (OH)

Posted by Karl (OH) on November 16, 2000 at 08:59:44:


This reminds me of something the mortgage lender on the first house I owned used to do every year. They would send out a letter in November stating that they realize that December is a tough time for most folks financially. So they would give the option to postpone the December payment, and push all payments back a month. (Of course the interest continued to accrue.) They charged a fee for doing this of around $100. Paying $100 to not have to make the December payment probably helped out a lot of people who were struggling to pay for Christmas. And it was good PR for this little bank.

Are you thinking that some of your people might skip because they have a December payment they can’t make? If so, maybe you could offer to push their payment back a month for a small fee, say $50. Not really sure about the overall wisdom of doing this, its just an idea.

Karl Kleiner

You can push payments back… - Posted by RobertR CO

Posted by RobertR CO on November 21, 2000 at 19:33:43:

…one month by collecting interest only that month. You may charge an additional fee if there is room for it and the payment is still reduced.

For those who pay on time I do not hesitate to provide an “interest only payment extension.” It is a relief for those in temporary trouble who have paid on time prior to needing a break. Many banks do this and I have in the past had this offer from a Bank at Christmas time. The bank also wanted a fee in addition to the interest only portion of the payment.