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-   -   What happens if we let our mobile home go back? (https://www.askmehelpdesk.com/showthread.php?t=386068)

  • Aug 12, 2009, 04:49 AM
    SunSHINE97
    What happens if we let our mobile home go back?
    We have a mobile home on my in-laws land in Alabama. We are buying our house we live in now. Family member took over payments on mobile home in 2001, but had bad credit and left it in our names and just up and left in 2007 and left all their stuff and mobile home in bad condition. We still owe $26,000.00 on mobile home. We went in and remodeled and fixed everything and have rented it out, but it's hard to keep people in there and we can't afford to make payment on mobile home and our house. When we first got the mobile home in 1999, brand new, we rented a private lot and when family member took over payments, moved it to in-laws land. What would happen if we let them come and get it or repossess it? What would they do to us, I heard Obama has new laws now, so could the put a lien on our property where we live now or garnish my husbands wages. Someone please help!
  • Aug 12, 2009, 05:26 AM
    ScottGem

    The home will be repoed and sold at auction. You will be responsible for any difference between the balance owed and what was gotten at auction. This will also have a negative affect on your credit which may impact buying your current home.
  • Aug 12, 2009, 07:23 AM
    AK lawyer
    Quote:
    Originally Posted by ScottGem View Post
    The home will be repoed and sold at auction. You will be responsible for any difference between the balance owed and what was gotten at auction. This will also have a negative affect on your credit which may impact buying your current home.
    If they choose to bother, they can sue you for the deficiency. If they do that, they can get a lien on your real property, garnish your wages, etc. Possible, but not a foregone conclusion.
  • Aug 12, 2009, 10:35 AM
    SunSHINE97
    Thank you both.
  • Aug 12, 2009, 10:47 AM
    SunSHINE97
    [QUOTE=SunSHINE97;1919337]Thank you both.[/QUOT

    I have had two of my friends call me today and they were wondering, one's mom wants to buy it but can't pay the $26,000.00. Same with other friend step-mom says she would pay but can't pay that much. Would it be wise to take a lump sum from somebody, and then maybe refinance the loan ourselves with it still in our name just the amount that would be left after they pay us the lump sum?
  • Aug 12, 2009, 10:54 AM
    AK lawyer
    [QUOTE=SunSHINE97;1919371]
    Quote:
    Originally Posted by SunSHINE97 View Post
    Thank you both.[/QUOT

    I have had two of my friends call me today and they were wondering, one's mom wants to buy it but can't pay the $26,000.00. Same with other friend step-mom says she would pay but can't pay that much. Would it be wise to take a lump sum from somebody, and then maybe refinance the loan ourselves with it still in our name just the amount that would be left after they pay us the lump sum?
    It would not make sense for your friends to pay you money without some sort of security interest in the MH. And whatever security interest you can give them would be junior to that of the MH dealer (or whoever it is that has first position). In other words, it would be worthless.

    It would make better sense to tell the lender that you can find them a buyer if they will agree to a short sale. They might very well agree to take less than the $26,000 rather than being forced to repossess it.
  • Aug 12, 2009, 10:56 AM
    twinkiedooter
    [QUOTE=SunSHINE97;1919371]
    Quote:
    Originally Posted by SunSHINE97 View Post
    Thank you both.[/QUOT

    I have had two of my friends call me today and they were wondering, one's mom wants to buy it but can't pay the $26,000.00. Same with other friend step-mom says she would pay but can't pay that much. Would it be wise to take a lump sum from somebody, and then maybe refinance the loan ourselves with it still in our name just the amount that would be left after they pay us the lump sum?
    That would be some sort of rent to own purchase agreement. Take as much $ down as possible and get an attorney to draw up a purchase agreement for the home. A friend of mine bought a double wide many years ago this way. She paid so much downpayment, had an attorney draw up a purchase agreement and made the payments until she could contact the bank where the loan was taken out and refinance the home in her name. It's a good deal for you in that you can keep whatever money was paid in downpayment and then any payments made without putting yourself in jeopardy financially. This way you keep the loan payments with your original lender up, you keep the insurance on the home paid and also any yearly taxes with the county paid up so there are no surprises later in that "Oh, so and so didn't pay for the insurance or taxes and now I owe them" Or "The house burned to the ground and the new "owners" didn't pay for the insurance on the home." This is your responsibility but in the end it is a heck of a lot cheaper to pay a premium on the insurance and the taxes than the insurance premium, taxes AND the monthly loan payment on top of that!

    A good real estate attorney would probably charge you around $150 or less to draw up such a purchase agreement. Just keep in mind that you will get to keep all the person's "up front" money should they default on the agreement. And don't transfer the title to them until the home is paid in full. This way if they default on agreement they become month to month tenants and then you can evict them if they don't pay.

    You can have them put the utilities in their names though, just not the title or pay the taxes directly.

    You don't have to refinance the loan on the home. Just do the purchase agreement instead. Much easier that way.
  • Aug 12, 2009, 11:57 AM
    SunSHINE97
    [QUOTE=twinkiedooter;1919401]
    Quote:
    Originally Posted by SunSHINE97 View Post

    That would be some sort of rent to own purchase agreement. Take as much $ down as possible and get an attorney to draw up a purchase agreement for the home. A friend of mine bought a double wide many years ago this way. She paid so much downpayment, had an attorney draw up a purchase agreement and made the payments until she could contact the bank where the loan was taken out and refinance the home in her name. It's a good deal for you in that you can keep whatever money was paid in downpayment and then any payments made without putting yourself in jeopardy financially. This way you keep the loan payments with your original lender up, you keep the insurance on the home paid and also any yearly taxes with the county paid up so there are no surprises later in that "Oh, so and so didn't pay for the insurance or taxes and now I owe them" Or "The house burned to the ground and the new "owners" didn't pay for the insurance on the home." This is your responsibility but in the end it is a heck of a lot cheaper to pay a premium on the insurance and the taxes than the insurance premium, taxes AND the monthly loan payment on top of that!

    A good real estate attorney would probably charge you around $150 or less to draw up such a purchase agreement. Just keep in mind that you will get to keep all the person's "up front" money should they default on the agreement. And don't transfer the title to them until the home is paid in full. This way if they default on agreement they become month to month tenants and then you can evict them if they don't pay.

    You can have them put the utilities in their names though, just not the title or pay the taxes directly.

    You don't have to refinance the loan on the home. Just do the purchase agreement instead. Much easier that way.


    Thanks, this sounds so much better than having to let it go back and ruining our credit. I will have to tell my husband about this when he gets home.

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