Explaining Financing and Repossesing in Michigan - Posted by Brad (MI)

Posted by Marc Faulkner on March 19, 2008 at 21:57:52:

This is how our typical add reads. The key is to keep the monthly payment and the lot rent combined at about what the average (or just slightly higher) rent is in the area.
Show the home and sell the benefits over the current situation. Explain that you will work with them and that you want to make the situation work for both of you and then find out what they are currently paying and ask, “is that affordable?” Some times it helps to explain that you can make the payment 0 if they pay all CASH! The key is to sell the home first. Spend time in the home and listening to what the buyers are talking about while doing the walk through. Probe to find out how much they have down before offering any suggestions. Lonnie says, “we try to keep it reasonable and affordable folks-what did you have in mind?” Put it back on them and listen…
As for repos in Mi. You need what’s called a Power of Agent that is available from the Sec. of State and you couple this with a Special Mailer that instructs the SOS to send the titloe back to you as the first secured payrty. Have the buyer sign both at closing and if they should jump ship you can sign off on the home “as if” you were them. This will not help you should the buyers “hold over” and stay in the home with out paying. Since it is easier to evict for back lot rent and since most buyers fail to pay both the home payment and the lot rent at the same time, the park will evict for lack of rent vs. doing a foreclosure.
I personally reccomend offering “cash for keys” prior to getting to this point and would much rather pay for the dead beat buyers U-Haul than the lawyer. You will also end up with your home back much quicker and in much better shape. At which point you find another buyer, get another down payment and start all over again except this time you own the home for less money than you did the first time around. I hope this helps.
Live!
Marc Faulkner
www.mfghomeinfo.com

Explaining Financing and Repossesing in Michigan - Posted by Brad (MI)

Posted by Brad (MI) on March 10, 2008 at 09:27:17:

We’ve just completed one deal (cash deal) - got the home for the back lot rent due and had to fix some stuff - and it was still in rough shape - and it was an old double wide. I think we may have gotten lucky to sell this one so fast, but everything went fine, so far.
Now we have a 76 2bed 1bath that is very clean for it’s age, and Explaining the financing to potential buyers seems to be a problem. As soon as we try to explain how it works, they seem to not understand or are not interested any more.
How do most of you explain how financing works?

Also If we are financing and have to reposses, what are the steps in michigan? Does the POA get it done without any legal steps, or do we have to go to the court house to take care of it. (I’ve seen some other posts about this, but I still would like to know what methods are actually working for people)
Thanks,
Brad

Re: Explaining/Repossessing - Posted by JeffB (MI)

Posted by JeffB (MI) on March 10, 2008 at 10:25:07:

If your buyers are not understanding (or are not interested in) the financing, then you either are not explaining it correctly or you have the wrong buyers.

I market my homes as having “in-house financing” and advertise the monthly payment (with complete Reg Z disclosure at the bottom in small print). This will get the attention of the people you want to buy your homes.

I have done many deal in MI and have never had to go to court for repossession. The park has always evicted first, and the homeowner signs the home back over to me at that time.

Jeff

Re: Explaining/Repossessing - Posted by Todd(AZ)

Posted by Todd(AZ) on March 10, 2008 at 12:26:58:

Hi Jeff,

My guess is you are overcomplicating it when explaining it to your buyers. Most everyone should know what financing is but I’ve switched it up before and tried “Make payments”, instead of “Will Finance” since I deal with a heavy hispanic population. Both seem to work the same but you might want to try that.

Also, my add usually says “Low down payment and only $275 per month” in addition to those words above so I’ve never had a problem with anyone not knowing what this meant. Be prepared for “How much is the down payment?” question and just follow Lonnie’s teachings from there. Todd(AZ)