Manufactured Home Lease Optioning
I have a person in Michigan that is desparate to get rid of his 1800 sq.ft Manufactured home and he wants to Lease Option it. Is this possible?
FYI:There are a varios other homes under the same pressure. :-?
Yes, but its like any other contract there is a DOS to consider though considering the thousands of REPOS they get back every year..... they are not likely to even consider accelorating the loan.
So to answer the question He can absolutely L/O it. I am doing them.
But why doesnt He just seller Fiannce the Home to you?
Just curoius what is the Payoff on the Loan?
Mark
Hi Mark,
He is having a hard time selling it and so are other people in this sub-division. I think it has to do with the high lot rent which is averaging $350. He owes $66,000 on this place. It's a nice clean sub and nice places also but I have not gotten many bites and he is desperate.
Darrell
Yeah, I can see what that is hurting Him. I know several developers down here doing the same thing.
They do a no qualifying, small down get them in and they qualify for a not so bad payment on the Home but then they lay the boom on them with the cost of the Dirt.
Together along with monthly living expenses it eats them alive.
Is He having trouble getting people interested in L/O or has He even tried that yet?
MB
Up North in the Chicago area the parks will not allow the unit as a rental. In addition the monthly assessment fees are high.
This poor condition severely limits methods of helping distressed sellers.
I've been advertising his home as an L/O for the last few months but I don't get many bites.
It does not sound like the numbers work. He might just have to face the fact that he is upside down. Either he buys down the loan or loses the place.
Restrictions on renting make it worse as that does limit the options yet again.
John
[addsig]
Yes. You may be right. I've tried to assist him but no one has called on his property.
Thanks!
It just came to my mind and I had to come back and ask about this L/O you were or are working on thats getting little to no results.
You mentioned the Dirt was $350.00 a month, but unless I missed it What is the Mortgage payment He is trying to cover and what was you offering to Lease it for?
Mark B
The total lease price is $1150 with lot rent included. Yep. Kind of steep for a Manufactured.
Ok, Lets see $1150.00 - $350 lot rent = $800.00
Question IS $800 the Mortage or is there some positive cash flow added here?
MarkB
I may have a solution depending on your answer
Yes. I actually had it plus $200 but the positive is now at +100. He actually pays a total of about $1050.
Darrell