We own a manufactured home that we have been trying to sell. It is located on a rented lot and is next to impossible for anyone to get financed. We also owe more than the house is valued at. We don't want to stay in the house for 30 years and are planning on buying a site built house. Our loan has been approved for the new house. We have been told by several sources that many people are letting their manufactured homes be repossessed because they cannot sell them. We are trying to do an owner finance on the house and if the buyers don't pay the mortgage we will just lose the house. We've been told that it will of course show as a repo on our credit but that we wouldn't get a judgement against us because there are approximately 8000 of these foreclosures per year and they just don't have the time or resources to do that. The house is in Texas where the laws make it very difficult to sell a manufactured home on rented land. I would like some feedback on this if possible. I'm also wondering how long the repo will remain on our credit report. Thanks!
Can you give more specifics on the home? Size, age, amenities, approximate location, terms of loan, etc. I have a source that I have not used yet that does refinancing and new home purchase loans on mobile homes on rented land. Also, I know a little about selling and buying on owner finance and lease options. PM me if you do not want to put all of this information on the web. I am in the DFW area of Texas. southland2.
I wouldn't make decisions about whether to walk away or not because somebody said the probably won't sue you. Have you thought about renting it out?
The house is a 2000 Oak Creek, 32 x 62. It has an 8 x 20 covered back deck, a 4000.00 water softener/reverse osmosis system, large kitchen and large bedrooms, and an attached workshop. It's in excellent condition. It's located just off I-35 between Austin and San Antonio. The lot has an extra large double garage with a lot of storage space in it. We owe approximately 70,000. The book value on the house is 51,500; wholesale value 46,300; loan value 38,700. We haven't had an appraiser look at it. The value would probably go up some because of the location, etc., but more than likely would not increase to what we owe on it. The payments on the house are 640.00 and the lot and garage rent totals 388.00. Many people have tried to get financed but no one has been able to buy it. The value is only going to decrease, so you see our dilema. We have been able to find some mortgage companies who do chattle mortgages but their qualifications are too hard for most people looking to buy a manufactured home to meet.
If you have people willing to buy it then consider a lease option where the buyer pays you an option fee, leases the homw for a period of time such as 2 years, and has an option to purchase it for an agreed amount. At least this will let you get into your new home provided you can justify enough income on your application for your debt to income ratio to work.
Thanks for the advice, and that is probably what we will do if we can find a buyer. I'm just curious as to the effect on our credit if we have to let it go such as how long it would stay on our credit report and the odds we would get sued and get a judgement against us.
