Private Mobile Home Contract
I have a mobile home in Iowa with a mortgaged owed to a lender. I tried to sell it two years ago, but was only successful in selling it on contract to another private individual.i.e., I owe lender...new buyer pays through me to lender. I do have a contract and security agreement with new buyer. If I were to quick claim deed this property to new buyer I know I would still be on the hook for the origional mortgage. However, I have heard that the origional lender would not be able to report abuses to any cedit reporting agencies. Is this true??
I'm not sure exactyly what you mean by "abuses" but if you're planning on not paying the lender, you can put money on it that it will go on your credit report. If the loan is in your name, it doesn't matter if you or Joe Blow is on the deed, the lender will still report on you, and will still foreclose/repossess the property.
Which brings up some other points. If you have signed a contract for deed or some other sell contract with your buyer, you are obligated to give them a clear title whenever that contract is fulfilled. If you don't, they could sue you. Finally, most mobile homes are titled like cars and not deeded, like homes. Do you actually have a deed? Does the land come with the home?
Roger
Thanks for your reply Roger. "Abuses" meaning if the new buyer does not pay or is late on payments. He is on the hook to me for the same amount I am on the hook to the origional lender. MH is not on private or deeded land but does have a title. New buyer is suppose to come up with new mortgage in his name in a year or so in order for me to get my name off origional mortgage. Not sure if he will be able to accomplish that task, so I am searching for another avenue.
First, for clarity, if the mobile home isn't deeded with land, it is not a mortgage. It is simply a secured loan with the mobile home as colateral. You would still be responsible for the payments if you're buyer failed to make them, then you would have to.
Also, since the mobile home is titled like a car, most security agreements state that if the payment is more than 10 days late, then the vehicle/personal property can be repossessed. Check your papers with your loan and also the papers that you had your buyer sign.
Roger