Posted by Ernest Tew on February 24, 2001 at 16:50:17:
Bryant, I don’t think that taking over the payments on a new mobile home is a good place to begin. The owners have probably realized that the home is worth less than what they owe.
To make a profit, you would have to find someone who would put up some cash and/or make higher payments. If it sits vacant for awhile, you would have to pay the lot rent, insurance, loan payments etc.
If you “assume” the loan, it means that you would be personally liable until it is paid off.
And, there are other ways to go wrong.
what should I do - Posted by Bryant
Posted by Bryant on February 24, 2001 at 09:37:19:
I am just getting started in real estate investing. I had some approach me about taking over their payments. They are almost 2 months behind, and they told the mortage company that they could have it, but that was before they met me. Since this my first deal I don’t want to mess up. They don’t want anything but their credit rating not to be distroyed.
The moble home is a 2000 model that was purchased in july,it is a 3 bd rms, 2 bths, single wide with no equity. How can I make this work for me and for them?
Extremely unlikely… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 25, 2001 at 16:45:29:
that there is money to be made on this deal…“no equity” means no juice for you…and more likely there’s negative equity, i.e., the loan balance is greater than the FMV of the home. There are LOTS of homes like that out there…and the banks sometimes sell them for alot less than the FMV. Let the bank take the home back and see if they’ll sell it cheap for cash…I generally buy such homes for 1/3 of their true value. If they balk, move on…there are far better opportunities out there.
You probably can’t - Posted by Blane (MI)
Posted by Blane (MI) on February 25, 2001 at 11:46:42:
One should never say never, but there’s probably nothing here for you to profit on. All I see is an expensive seminar. If they bought it in July not only is there no equity, but they probably owe more than it’s worth. Being new at this, can you sell it for more than it’s worth? For the money you’d pay for this, you can find a number of Lonnie deals to get your feet wet with. Pass on this IMHO.
Re: what should I do - Posted by Marshall
Posted by Marshall on February 24, 2001 at 18:06:00:
A lot depends on the value of the home and how much they have paid on it. Odds are they paid too much for the house, paid little down, and you would end just taking a problem off their hands that you couldn’t resell for a profit. And what about lot rent? Are they behind on that, too? You would have to pay the lot rent while you were looking for a buyer. Give me the year, model, and other specs of the home and I will look it up in my NADA book to give you an idea what the home is worth. Also, tell me what State the home is in, i.e., Ark., IL., MO.