DEFAULTING ON LOAN

[Sherry]

I'm thinking about defaulting on my MH loan. My home has been empty for 5 months and the payments are killing me. I'm not having any luck selling/renting the home right now.

Any suggestions regarding a MH loan default?

Thanks.

Sherry

[rmurray]

You might want to talk to a bankruptcy attorney in your state...If you just give back the home you will still owe tens of thousands after the lender sells the home..They can and often do take judgments which puts lien on all your assets (bank accounts real estate, autos and even can lead to garnishee of your wages).There can be even substantial IRS obligations involved. Good local advice would be much better for you...Actually 5 months to sell is NOT unusual in the house business...What have you done to sell the home....Are you ready to sell it for less than you owe and pay the difference?

[Sherry]

thanks! I am willing to sell for less. I owe $66k and would be willing to take $60k. It is a burden for me as I have moved, had a baby, new house built, new financial obligations. Nothing was planned, so I'm sort of between a rock and a hard place. I've leased it previously but the people had to move out of state. It's currently on craigslist.com, I have signs in the window, flyers handed out, etc. I really don't want to go the route of default or bankruptcy. I just wish it would sell. It's a 2004 Shulte home with drywalled living areas, 3 bedroom, 2 bath, etc. I paid $72k for it brand new. Lots of upgrades put into it.

[rmurray]

Do you own the property it is on or must it be moved? It is not unusual for professional home sellers (dealers) to take a year to find a buyer for a used home. Have you made it as pretty as you can...Wouls you buy this home now..There is a listing service here on this web site they will list your home for a 1 time flat fee until it is sold..Being an absentee landlord is not solving the problem...It will only delay the problem till later..I still think you should get legal advice...Default often haunts you for years...

[Sherry]

My home is listed on this site and has been for over a year. It was even one of the featured homes on the sidebar. The home is empty and clean right now so there isn't much I can do. It is in a community. I had an agent trying to sell it when I first moved out. To no avail. It's in Gibraltar Michigan on Meadowlane. Check out the add on this site.

Thanks.

[rmurray]

Your home does look sale ready..Your description is good (except for the 2 MAN shower I would want a 2 PERSON shower) and pics are appealing...Unfortunately you are in the WORSE home selling area in the country. Are other homes selling in the park. Have you offered the park manager a chance to sell?. Have you talked to your lender? I assume it is Vanderbilt about innovative foreclosure stopping strategies. Some lenders will allow you to sell the home well under the payoff and refi the balance (if you talk to the lender be sure you have a supervisor). Some parks will even lower the rent on empty homes to make the sale process more affordable. Sounds like you have done most you can so far. I still think local legal advice is called for before you default.

[Sherry]

Your feeback has been excellent. I'll try to talk with my lender. The park management knows I've been trying to sell. As a matter of fact they directed my last tenants to my home. Unfortunately, they didn't get financed and moved out of state. So, once again, it sits empty. I'm not sure about this statement however "I assume it is Vanderbilt about innovative foreclosure stopping strategies."

What does that mean.

Thanks..

Sherry P.S. I'll change the shower description

[Sherry]

It's even listed on craigslist.com!!! Next maybe ebay!!!!

[rmurray]

Some lenders have anti forclosure strategies they can work with, especially if they are sure you are not just trying to shirk your resonsibilities. Some lenders might lower the rate to get the payments down...Some might allow you to sell below the payoff and refi the balance you owe over enough time to keep that payment very low. I do not know if Vanderbilt has any of these..You might mention that you are checking with them for help prior to filing bankruptcy. BK scares them more than a repo..Has your park offered any consessions in the rent while it is empty? Good Luck

[Sherry]

I'm going to call my lender and the management at the community today. I've got a 7.75% interest rate on the original loan as my credit was excellent. I'll see if they will work with me. The park management should at least give me a break on the lot rent. Again, I thank you for your advice.