Posted by Michael(KCMO) on January 11, 2006 at 12:13:54:
I must admit, I don’t have a lot of experience w/ actually being able to do this. I’ve only ever had one buyer w/ a score over 600 and he had a BK on his report, so his financing wasn’t approved.
As far as having sold above NADA . . . that would be a valid concern. One thing I do know is that when determining NADA value you can plug in many different home options that are going to affect the “value”. If it was fixed-up/remodeled better than new then make sure you’re reflecting that in your NADA valuation. Taking that into consideration, was it still overpriced? If so, how much? Would a bank still use their own discretion and finance it or are they strictly “by the book”? I’m sure if you can somehow justify the price then it’s possible. Might not be easy, but possible.
Karl will have much better advice than I will, I’m sure. He has much more actual experience w/ this than I do. Which brings up a question of my own, Karl. Do you know of a lender who will loan on a mid-80’s home in a park for a buyer w/ a score of 669 and a chapter 7 BK in February of '04?
FMV Percentages for Tax Season - Posted by JeffB (MI)
Posted by JeffB (MI) on January 10, 2006 at 08:32:25:
I’ve been trying to get some quotes of what my Lonnie notes might be worth on the market so I can do my taxes using John Hyre’s FMV approach. So far, due to the age of the homes and the buyer’s credit scores, nobody will even give me a quote.
Any note buyers on here care to provide an estimate? Here are the particulars of the seven notes I’m currently holding:
I’m not looking to sell any notes right this minute, just need some idea of what they’re worth for tax purposes. All notes are performing to date. If I missed any necessary info let me know. TIA,
Posted by Karl (Oh) on January 10, 2006 at 15:45:31:
Jeff,
Mail me a solicitation for a bid on this package. Something on your company letterhead. I’ll send you an all cash bid for the whole portfolio. Send to P.O. Box 9173, Cinci, Oh. 45209.
I liked Michael’s idea on note #3 to refinance with a bank. Check out mountainsidefinancial.com. They specialize in refinancing chattel with good credit if the loan amount is greater than $20k.
Re: FMV Percentages for Tax Season - Posted by Michael(KCMO)
Posted by Michael(KCMO) on January 10, 2006 at 10:40:21:
I don’t have a quote for you, but in looking at your list one thing comes to mind: Why don’t you try to get #3 refinanced and cash you out? The home is new enough and the credit score is probably high enough. Offer them a discount if they can cash you out. $20,000 CASH! Wouldn’t that be nice?!
Re: FMV Percentages for Tax Season - Posted by osupsycho (OK)
Posted by osupsycho (OK) on January 10, 2006 at 10:37:09:
Jeff I went through the same situation and got the same results. My advice is to use 45 to 50 cents on the face value dollar, as suggested to me by John Hyre. He makes the point that you do not have to be 100% accurate but only need to be reasonably accurate (in the eyes of the IRS) and most mobile home paper will fall into that range.
Posted by JeffB (MI) on January 11, 2006 at 11:42:04:
Karl and Michael,
I’ve thought about getting the buyer on the $20k note to refi, but my fear is that since I sold this home way above NADA, it’s going to be tough for any bank to approve such a loan… nor do I want the buyer figuring out that they paid too much. The home was completely remodeled, but still from the bank’s eyes it’s not worth the amount currently owed on it.
Considering this, do you still think I should pursue this avenue?