How Do I Get My Client Into MH
I am trying to get my client into a Manufactured but there are some obsticals. He has a 560 score and it requires approval for Lot rent. The owner is selling the home for $40,000. It's a 1997 double wide, 1600 sq.ft with all appliances included. How can I get him financed? He needs to show the lot rent people he is buying. Any help appreciated.
Quote:
On 2004-10-06 15:29, DKirby wrote:
I am trying to get my client into a Manufactured but there are some obsticals. He has a 560 score and it requires approval for Lot rent. The owner is selling the home for $40,000. It's a 1997 double wide, 1600 sq.ft with all appliances included. How can I get him financed? He needs to show the lot rent people he is buying. Any help appreciated.
You say this is your client? Are you a Realtor? With a 560 credit score, your client needs to be propped up by someone else and definitely can't go to a bank or finance company. You could buy the mobile home yourself at wholesale prices and sell to him Retail with you carrying the note. Then sell the note to a private investor like myself.
You could have the Seller take back the note and then sell the note to a private investor.
I buy these type of notes all the time. You might say...... why don't I just do the deal directly with the home buyer? It's because his credit is so low. Some interested party (like the MH seller) needs to be in the middle to guarantee the note.
Needless to say the price of the MH goes WAY UP when someone can't qualify for decent credit rates. It pays to maintain good credit. If you don't you'll pay and pay and pay. Many poor credit people get into homes using this method. The monthly payments don't look as bad as you might think.
I must be missing something here:
Why would he want to buy the MH if the "lot rent people" won't rent to him?
What's he going to do with a MH he can't move to the lot? Or MHP?
As my later posting on this board pointed out, it might be considered fraud to sell a buyer a MH that he cannot live in.
He might find financing of the MH by using a cosigner with good credit, since his is definitely NOT in the "Good" range.
Even so, the MHP mgr would NOT let him in the MHP, probably, with cosigner's signature on MHP lease, so again, what's he gonna do with a MH he can't live in or put anywhere?
Transferrance of mobile home title in the purchasers name would probably be enough to appease the park manager to allow him to rent a lot. The seller would then list themselves as the lienholder on the lien. Or if the seller sold the note to an investor, the investor would then become the lienholder on record on the title.
Moge, first step HAS to be getting approval of hte MHP for the prospective buyer, and to sell him the MH, with your knowing (but the buyer does NOT know) that he could be rejected by that MHP, and never have any chance or right to move into his MH would be actionable legal FRAUD.
So please, sellers, tell your prospective MH buyers they've first gotta get approved by the MHP management...and until they are, you won't sell to them.
Thanks everyone for your comments. As you already guessed, this is the first MH I ever dealt with. I'm living and learning! The owners had told me that the tenant could move into the MH and than go to the Lot rent office to fill out the application afterwards. This did not happen! The lot rent people were upset because the owner did not follow the rules. They did not want to deal with me at all.
However, I gave the potential resident his money back and asked him to move because the lot rent management were evicting the primary owners and whoever were in the property for not following the rules. I did have him sign a statement saying that they release us from any liability or legal pursuit. I just found out that the guy is still there and not paying anything! The owners asked if I could get him out or the sheriff was coming to sit him out on the 12/17/04. I did notify the person occupying the property and asked him to move but the lot rent park says I have nothing to do with this situation.
I've learned the hard way not to trust what people say and to double check EVERY thing on my own.
Sounds like you were trying to help somebody who was simultaneously trying to take advantage of you!
You've done the right thing by giving his money back and washing your hands of him.
Key to dealing with any potential buyer in any MHP is to tell them they've gotta get cleared and approved by that MHP before you can deal with them...that should eliminate a lot of these con artists, as you can check in a flash to see if your prospect has or has not been approved.