PRE-HUD HOME WITH LAND

[sheryl]

I am very overwelmed with the feeling that I have been a victim of predatory lending and fraud because I can't get anyone to even speak to me about my situation. I cannpt afford an attorney, am
committed to arbitration, and I guess no one has the time to help me figure out if it is possible to refinance my home or not. I would really appreciate speaking for just a moment with a true expert in this field. Is is at all possible, and if so how would I go about doing whatever is necessary to finance a pre-hud home with land? If the answer is NO, JUST SAY SO PLEASE!
Sincerely,
Sheryl

[Roy Bonney]

Generally the financing of the pre-HUD homes is something that is better suited for a local bank. They are familiar with local property values, and do more "character" lending. If you have a current relationship with a local bank, where you have checking and or savings, they may be your best bet.

[mac]

I'm not an expert, but let me try...
Banks, as a general rule - value pre-HUD homes at a very low amount. The main value in this type of situation then becomes the land. Bare land loans carry a bit more risk and tend to require a higher down payment/equity amount.
Most mortgages get written by a bank, but then sold to investors and serviced by maybe a third group. So what appears to be one party is actually three. They deal in mortgages as a commodity... they're set up to process cookie-cutter, standard loans.

As a result of those general rules, larger mortgagers/banks don't want to do this business. Roy's point is right on. Another option MIGHT be to talk to Washington Mutual or other banks who fund and service their own mortgages. You might have to pay 1-2 % higher than a standard loan.

Good luck! Mac

[Robert Riding]

I have a 1975 manufactured (mobile?) home on approx 1 acre. It sets on a half basement, has brick from foundation to roof line, has a double carport attached and with a 24' by 30' garage attached. Axles have been removed, has been permanently attached to basement. Is this stilled called a mobile home and can it be classified as real property? We have buyers for this home but the two banks in our town will not loan on it. The buyers have been approved with their credit but no go on this house. Several years ago one of the banks in town did give us a loan using it for collateral. I don't understand???? It has been apprasied by someone that does apprasials for $70,000.00..Can anyone help????

[Mark]

No matter how much you dress it up, a mobile home will always be a mobile home. If it is your primary residence, it can be classed as real property, which just means you don't have to buy a tag for it every year.

The primary structure is still a mobile home, and that's how it's going to get treated.

How much of that 70k was the value of the land?