DW MH Question
I was recently going through LP's in my area and called a guy, started talking with him found out that his address was actually that of a DW mobile. The more he told me the more questions I had about wether or not there IS a deal here. Let me give you what I have thus far.
DW
Sq ft he's guessing 1,400
year ?
Repairs? (I should have found this out!)
on 1.25 acres
appraised 103k (So he says)
owes 63k
payments $565/month
I asked him how far behind he was on payments he said 5 upon furthur talking he said his lender told him his behind 9 or 10!
He also said he has tried and been declined recently by 5 lenders.
He wants to keep his mobile even mentioned wanting to take out a 2nd if he could.
Not that I'm ready to do this deal, but more so I can learn something from the pros on this forum. What would be my options if I did persue this one? Any thoughts? If more information is needed please let me know I will try and find out. Thank you in advance
-Annette
Annette,
With MH deals there can be a large difference between what the person wants/needs and what an investor will pay. There is a glut of MH's out there so the resale value can be very low.
When speaking with someone with a MH on land, always clarify just what sort of foundation it has. If the home is permanently fixed to the foundation then the MH is consider largely the same for lending purposes as a home built on site. If the MH is sitting on blocks or some other method that is not a permanent foundation the the land and the MH are not one and the MH is considered personal property.
From what you wrote the person wants to keep their home. If someone wanted to do a short sale or flip, etc. they will expect the present owner to clear out.
If the present owner would consider taking on more debt to keep the place, do they honestly have a way to pay off any more debt? They are 9-10 months behind. Has something changed so going forward they can make the payments? If there really was a 1-off reason they fell behind then they should speak with the lender about restricting the loan (moving the back payments to the end of the loan). They will need to prove that things are different. Some MH lenders will go for this rather then take the place back.
John
[addsig]
I just helped a client complete a short sale with Greentree, and I was impressed with just how far GT went to redo, or recast the existing loan.
They were more than patient and did all possible to help their debtor/buyer.