Im stranded!! - Posted by Laura

Posted by SusanL.–FL on December 11, 2000 at 10:17:02:

…for sure.

Hi Geoffrey,

I just heard something interesting on Dave Ramsey’s Financial radio program the other day. He said that it isn’t as hard getting a mortgage these days AFTER a bankruptcy (as it used to be). Said that a person can get a mortgage THREE years later.

However! He said it is HARDER to get a beeper or CELL phone with a bankruptcy on your record.

go figure… !

I’ve noticed that even applying for auto insurance, they all want to pull a credit report these days.

We all learn something from our life’s experiences – no matter which path we decide to take.

Im stranded!! - Posted by Laura

Posted by Laura on December 07, 2000 at 22:19:22:

Someone please tell me what I can do. I am poor and have no money.I accidentally ended up with an older mobile home in my divorce. I had to refinance and now I owe more on the home than I can sell it for (not its appraised value)No one is interested in buying and I desperately want to buy a home and move. The owner of the park will not allow me to rent it out and besides all of this it needs about 2000$ in repairs!! Can someone please share some wisdom??

laura, Bud, and G-Man - Posted by AnnNC

Posted by AnnNC on December 08, 2000 at 19:05:21:

What am I missing here, other than original post did not give enough $$ info. Can she sell with owner financing on enough spread in interest rate to cover
the payments, a little down for moving money and deposit on her next housing?.
Is loan assumibility an issue here? Seems like she is not going to get enough to pay off the loan, but with
good financing could sell, even if she has to pay the kitty as someone said. I know I missed something here.

Re: Im stranded!! - Posted by Sally

Posted by Sally on December 08, 2000 at 14:05:36:

Perhaps the way around the “no rental” rule is to simply give your “renter” a 1% ownership in the mobile, making him an owner (have the renter sign another instrument giving back the 1% ownership so when they leave you can have back your 100%). I know there are some specific issues with regard to a mobile is some areas being classified as personal property as opposed to real property, but it should not make too much difference in this situation.

After you rent out the home to cover your payment (plus getting a security deposit)perhaps you could get into an owner contract (with a 3-5 year term) using the security deposit from the renter as your down payment or a longer lease/purchase contract.

Best wishes to you (remember Robert Kiyosaki lived in his car for a while when he hit rock bottom).

Re: Im stranded!! - Posted by Mike-BC

Posted by Mike-BC on December 07, 2000 at 23:37:23:

Laura - it sounds like you are in desperate straits! It may be in your best interests to declare bankruptcy…if things are as bleak you suggest. However, you have this mobile home which has some value but you currently have financing that exceeds it fair market value…this is what I am hearing you say. The question is then how to turn this liability into an asset. Here are a couple of ideas that come to mind - 1. sell the mobile on a rent to own deal. In this way you receive money from the monthly rent to pay down the loan. You will need to structure the deal in such a way that the when the renter exercises his option to buy, the sale price meets the outstanding loan. 2. Find a motivated seller who will accept the mobile as a trade on his home.

Re: Im stranded!! - Posted by Kevin Subbert

Posted by Kevin Subbert on December 07, 2000 at 22:44:46:

Laura, Im sorry to hear of your dilema but Im not surprised. This isnt going to be what you want to hear but it is all the wisdom I can share with you on your situation.

First, how do you “accidentally” end up with a mobile home? I can accidentally bump my head or trip over a stone but getting a home is no accident.

If you could not afford the payments on an old mobile home, (im assuming this is why you re-fied) then how are you going to buy a house? Especially with no money. Perhaps you need to rethink your position and wait until your in a better position financially to buy a home.

Pay down the note on the mobile, save the money for a down payment on a house, and then go from there. Its not easy but people do it every day.

Sorry I couldnt offer you a quick fix solution, but I dont think there is one.

Kevin Subbert

Re: laura, Bud, and G-Man - Posted by Bud Branstetter

Posted by Bud Branstetter on December 08, 2000 at 20:46:35:


You are right that we don’t have enough information. The possibility exists that someone would pay more on a wrap type of arrangement. But then the mortgage holder nay right off, take back, or reamortize the loan. The 2K in repairs may be a contractor ripoff that the handy buyer or brother-in law could do for a few hundred.

When words like desperately and ended up with are used it tends to make you think there is a lifestyle or attitude that needs revisited. No way of knowing if she is a willing victim or capable of controling her fate.

I wouldn’t suggest ‘bankruptcy’… - Posted by SusanL.–FL

Posted by SusanL.–FL on December 08, 2000 at 11:59:10:

…cause when the goin’ gets TUFF, the tough get goin’!!

Use the old ‘noodle’ to come up with a creative way out of this mess.

Not the answer - Posted by Bud Branstetter

Posted by Bud Branstetter on December 08, 2000 at 11:56:45:

Declaring bankruptcy is not the answer. The cost is at least 2k, altough the sharks take payments. The long term effects just aren’t worth the price.

Then neither is a rent to own. The park owner says no rentals. Trading to someone for a down payment-it is unlikely that they will want to live there or move it, remember no rentals.

I do think you are on the right track in that someone else needs to occupy it for her to move on. A sale could be structured where she feeds the kitty for a time. A give back to the mortgage holder may work.

The real answer is how to cut down expenses or increase income while developing a winning mindset. She didn’t tell us much to help her with these real problems.

I agree, Kevin. - Posted by SusanL.–FL

Posted by SusanL.–FL on December 08, 2000 at 10:43:29:

Why did deeper into debt (buying a house) when she can’t afford the ‘circumstances’ that she is already in?

Re: Not the answer - Posted by Geoffrey Faivre-Malloy

Posted by Geoffrey Faivre-Malloy on December 08, 2000 at 14:56:00:

Amen to the fact that bankruptcy is not the answer. If I could go back and change my declaring bankruptcy 7 years ago I would have. It JUST fell off my credit report 2 months ago. It was a bad bad BAD decision that I regretted for a long time.

I’ve heard of parks not allowing rentals. I’ve also heard of people getting creative and deeding someone a 1% ownership in the property. They then have a beneficial interest in the property and aren’t technically renting but buying or something like that. I think that trick was in the Carleton Sheets stuff.