How Do I Get Out Of Mobile Home Park?
I have lived in this park in MI for 9 years.
I live alone, my lot rent with water is very
close to $400/mo and with hse pymt very
nearly $800/mo! Cant sell it and cant afford to move it, I still owe about $40,000
Can anyone help me figure this out???
I a 57 and know I need to get out of this
financial mess so I can retire at some point. What are the penalties for leaving it? Can they still charge me lot rent/mtg
pymts?
Thanks to anyone :-o
Kerrick
Probably your only GOOD out is resale of your MH, with YOU taking a note from a good buyer, and your continuing to pay the note you're paying on, with your present lender.
That way, you know your M pmt to your lender is paid every month, and you're in charge.
If you haven't got and read Lonnie Scruggs' little book, Deals on Wheels, for sale on this site, get it and read it now as LS sets out how such a conrtract and note would be taken by you from your buyer.
In financing MHs for retail buyers, I have learned to get a credit report, good down pmt, proof of buyer's income, etc...so I'm not going to be taken or cheated by any flaky crumbums.
Of course your MHP has to give its approval of any new buyer you plug into your MH.
Because your lender just might call your note if the MH title is transferred now, you might want to sell on a contract of sale, keeping the title firmly in your name, and not disturbing your lender until you're fully paid.
To sell and give the buyer a title now, would require your lender to release its lien on the MH, and until its paid, of course, isn't going to be giving you a release!
But if you sell on a contract, with the approval and cooperation of the MHP, keeping the title firmly in your name, and NOT disturbing your lender, that lender probably won't bother you.
Good luck.
John Merchant
[addsig]
Hello again and thank you for wrting back
so quickly! Selling the home and keeping
the note sounds great,however, its been
up for at least three years already.
Every Jan the lot rent goes up $15/18.
People are movig homes out of here
every day or leaving them, and that
many more are for sale.
No one wants to live here when they do
the math on the lot rent/hse pymt!
What are the reprecussions for walking?
I have a bankruptcy that is due to be off
my records in 3 years. Thanks again.
If you walk you will be liable for the lot rent, etc. Not sure how much each of these would be pursued. Maybe the MH Park folks would fail to chase you but the lender for the MH would definitely try to collect. Hence you would be slightly worse off then you are now with respect to your credit.
The park does seem to be a problem the way you put it. Are there any other ways to look at the situation? If you can not get out from under the present deal, can you get creative with the other MHs for sale and make some money to dig your way out. I am sure the situation would look a lot better if the 40K you owe was cleared by doing some deals and earning the 40K to pay off the loan.
Have you considered having the MH moved? It will cost a bit of money. Either to a different MH park or to a lot to which you could permanently attach the MH to? The value of the MH is likely to be higher when on its own lot rather then in a park? Again you would need some money to do this but...
Walking is always a choice. Not a great one but maybe the best you have. If you want to you can learn from the boards here how to do deals that make you money so you can earn your way out of some prior bad decisions. That would also make the retirement a bit easier as you could build up a nest egg.
John
[addsig]
1) Rarely does the mobile home lender go after the person for back rent owned to the park.
2) The park will notify the lender of the back rent and when the rent is not paid tby the tenant ... then the mobile home lender is responsible for paying the park rent. The lender will get the home back as a repo. Some repo lender will keep the park rent current and then other repo lenders try to get the buyer to pay for the back rent owned.
3) Walking away from you home in the park ... your defaulted mobile home loan will show up on your credit report.
4) Try talking to the manager with your lender and explain your situaton with them. Explain your options and see if they would be willing to discount your loan. Because the lender really would not want to take your home as a repo and then the lender will loose lots of money (park rent, loss of loan, sell at discount as a repo). Why not help you out and point out to the lender that you have paid you payments on time.
Cheryl Lopez