Re: Need info on selling MH note - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on July 12, 2001 at 12:16:23:
I think you already know this, but you are in a world of hurt here. The depreciation on new homes, along with long term notes that have little or no amortization in the first few years leaves you with a mobile home that is worth much less than is currently owed on it.
The problem I see with your solution of creating an owner financed note, seasoning it and then selling it is that you can’t create a note against the property when you already have a lien on it from the original lender.
A few possible solutions come to mind :
- Sell the home on an land-contract. This is similar to your owner financed note idea, but here you are creating a long term sales agreement, not a new note. Your name would stay on the original note, and you would still be responsible for the payment.
2.You could also consider a lease-option agreement with your new buyer. Just make sure the monthly rent covers the mortgage payment and that the park allows rentals. If the park doesn’t allow rentals, you will need to go with the land-contract idea in #1 above. If your tenant/buyer exercises their option, they get new financing and you pay off the note.
- Let your new buyer assume the note. Most mobile home loans can be assumed. Your buyer will have to be approved by the holder of the note. In some cases you will still be liable for the note. Try to get a release of liability if at all possible from the original lender.