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mrmike · Nov 3, 2006, 05:20 PM

I am buying my mobile home, and paying lot rent to park it here. Wife & I would like to get out of it and start over somewhere else in the near future. This was our first house, no credit back then... so we are paying 21% interest. Had it for 6 years now, and I still owe more than what the house is worth to date. What would be the wisest decision to get out of it?
I have thought about just "selling by owner" and giving that cash to the mortgage company, but that will not pay off my mortgage. I feel lost and going nowhere here
Thanks

Fr_Chuck · Nov 3, 2006, 05:26 PM

Work with the lender, sell it for as much as you can get for it, and see if the lender will allow you to keep the balance on a personal note.

There is no good way out besides that. If you stop paying, they foreclose on you, sell it for what they get at a auction normally which is a lot less than is owed on it, then they add repo costs, sell costs and you will still owe most likley about as much as you do now and not have a trailer.
( plus it will be negative on your credit report)

Next you can try and refinance it on a lower interest loan, it don't get you moved out, but it will get the payment lower.

mrmike · Nov 3, 2006, 05:34 PM

OK. Thanks for the advice. What happens if my lender still wants my remaining balance after I "sell by owner?" How does the party I sell to have "ownership" of my trailer if the lender still has the deed and is not paid off?
Basically I will just have that amount to pay on monthly until its paid correct? I don't know anything about mortgages or how it works, so pardon my ignorance.

As far as refinancing, would you suggest I try to refinance through my current lender? Or go somewhere else?

Fr_Chuck · Nov 3, 2006, 05:53 PM

You will have to have an agreement in place with your lender if you are going to sell you house for less than the loan, in those cases they have already oked you for a personal loan for lets say for up to 4000, so you can agree for a sell for up to 4000 under your loan value. Then at closing, the lender is there, you sign a loan paper to them for the balance, the new buyer supplies them a check for their amount, and they transfer the deed.

Also you may see if they allow someone to take over your loan, then you find someone with really poor credit, that would just take over your payments to take over the trailer.

Of if your state allows you to do this, you sell it to someone on a contract for deed, they make monthly payments to you and you pay on the mortgage with that money. ( I have some houses I do that way myself)

Or you rent it out if possible if the rent would be enough to make all of your payments

And I often find your currect lender is a great place to start ( esp if you have made all your payments on time) Since they know you pay and pay on time. Now of course if your credit has gotten better, there are a lot of good rates out there right now.