Owner Financing

[Melissa]

I posted on here awhile back about selling a 94 Fleetwood Singlewide 14x80 in excellent condition. We have had some interested buyers since then, everyone has loved the home but no one has been able to get financing. Well we had a man come by today who had a mobile home hit by a tornado about a year ago and is looking another mobile home. He has been renting a house from a friend of his but his friend is about to sell the house therefore he has to find something soon. We have been totally against owner financing from the beginning, just more of a risk than we were willing to take. This guy is willing to try to find the financing, but would rather we do the financing. I usually say no but this is what caught my attention, he has enough from FEMA to put 1/2 down and we do the financing on the rest. That would be enough to pay off the remainder of our loan and we just have the monthly payments he would be making to us, that way it isn't so much of a risk to us. If his credit and references check out, how big of a risk is this? We could basically sell it this week if we are willing to do it. What are the things we should worry about and if we decide to do it how do we go about it? Thanks!

[Michael]

Hi,My mother in law is owner finaning her home.She went to a lawyer and set it up to where the lady does not make the payment at a certain time she got it back with no problem.
she retains the title till payed in full. hope this helps. I also sold one like this way in the past with no problem.

[rmurray]

Great deal....just be sure you spend a few dollars to make sure the contract is legal in your state...while talking to the attorney..ask about the process for this type of contract if it were to go into default..

Good Luck

[annaz]

This is actually a really good deal, especially if his down payment will pay off the house. This is money in your pocket and if he defaults on the loan, USUALLY the amount down is money in your pocket and isn't refundable.

Many like to do an owner carryback, especially if the property is paid off, because the down payment isn't refundable and it's only a moneymaker for people if they default.

The main point is that is HAS TO be set up through a lawyer or title company so late payments have a fee and a certain amount of missed payments would mean a default on his part.

It think it's a great idea. I would do a credit check and make certain that whatever you owed on it is payed off by his down payment and isn't refundable as if he defaulted, it would do absolutely no harm to you.

[annaz]

This is actually a really good deal, especially if his down payment will pay off the house. This is money in your pocket and if he defaults on the loan, USUALLY the amount down is money in your pocket and isn't refundable.

Many like to do an owner carryback, especially if the property is paid off, because the down payment isn't refundable and it's only a moneymaker for people if they default.

The main point is that is HAS TO be set up through a lawyer or title company so late payments have a fee and a certain amount of missed payments would mean a default on his part.

It think it's a great idea. I would do a credit check and make certain that whatever you owed on it is payed off by his down payment and isn't refundable as if he defaulted, it would do absolutely no harm to you.

Owner carrybacks usually carry a higher interest rate too for the convenience of him not being able to get financing. This isn't in his best interest only yours. But I have to wonder if he can put 1/2 down, why can't he get financing???????

[annaz]

nt