The Manufactured Housing Forums

Hello,
My husband and I and our 2 kids have been living in a mobile home in a park for 5 1/2 years. After the first year we were here we refinanced through Western Finance and Vanderbilt bought the loan from Greenpoint. Our rate went for 12.5% to 9.5%. We kept the same payment and took 10 years off the term instead of lowering the payment. Well we bought our mobile home for $48,000 and we now owe approx. $52,500!!!! Western Finance charged us almost $4000.00 to refinance!!! Our family is outgrowing this house and we are afraid to even attempt to put it up for sale due to the inequity. Any advice? What would happen to our credit if we defaulted? I have heard many things such as it would have a HUGE impact and I have heard it would only hurt our credit for 2 years? Any help you could give us would be greatly appreciated!! Thanks, Mr. and Mrs. Ronald Sandvik, Colorado Springs, CO

Whoever told you that it would only hurt your credit for only two years is DEAD WRONG!! I've got a friend that let his home go back and it destroyed his credit for over 8 years. Why? Even if you let your home go back Vanderbilt will sell your home for less than you owe then sue you for the remaining balance. They will obtain a judgement and you will find it hard to get another mortage when you credit score drops to 400!

Also, you're not looking at the big picture! Just because you owe more than you paid for the home doesn't mean this is a negative thing. You are saving thousands of dollars in interest!! Below is how much you are actually saving on a 20 year note:

48,000 @ 12.5% Payback Amount $130,883

52,500 @ 9.5% Payback Amount $117,448

More money is going on the principle every month. You've got blinders on..this is a better suituation than before!

C. Yeary

I much agree to the other post...Someone is giving you very bad advice...

You are asking legal advice..you should be getting legal advice from a local attorney...The consequences of a repossession can vary by state...but all are sever...Judgements in some states never go away...and in some states the holder of a judgment can garnishee wages..Be careful..

Thank You for replying so quickly!!! I am glad I asked an expert. Is it hard to find people willing to assume a loan like this or should we just wait it out a few more years? I think the last time we had a book value run it booked at $32000.00 Do we have the option of moving it? Do you know of a company that would finance the move, construction loan to improve the property to get it ready, a permanent foundation and rope it all into one loan? Our Hud tags are still attatched and we have hit wall after wall until I found this website. Sorry about all the questions but you are the first person to actually know what you are talking about. Thanks, Ron Sandvik

Our home is current on all payments, I was pretty sure that wasnt what we wanted to do. I would rather stay in it than screw up our credit. Can you answer any of the questions on our second email? Thanks Erin Sandvik

First...I would not obsess with "book" value...These books do not buy homes...The value of your home is in the location...If the park is desirable it will sell...

New home prices have risen a lot in the last 2 years and that means used homes have come up with them..Unfortunately the books only report the past and run months behind the trends..

As far as lender are concerned..You might try the lender section of this web site...they have lenders here who specialize in manufactured homes..

Beyond that..I would talk to a few dealers in your area about the idea...and get referrals to the loan originators that they use...They will know those who specialize in manufactured homes in your area..

At ManufacturedHomeLender.com , you'll save time and money. You will discover which participating lenders offer the best programs and rates to meet your needs. Starting out with the right loan or refinancing can add up to substantial savings over the years.



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You have a third option. You haven't mentioned whether the home is a singlewide or double so can't tell you costs involved, but you might have the option of purchasing land and moving your home. With the current loan rates, you might be able to obtain a land/home loan for less that you are currently paying, even considering moving and land purchase expenses.

Erin,
My name is Stacy Showman, I am Vice President of an Interim Loan company (construction loan)........we do land home packages if you are thinking of moving your home and doing some improvements. I could also refer you to a mortgage company that would find you a great mortgage with a good interest rate (you really should have about a 7.5% interest or lower). We are actually paying off a home with Vanderbuilt right now and their mortgage company is finding them a better deal, they are buying some land and moving the home to put it on a permanent foundation.......both will raise the value of their home. If you are needing a bigger home you might check into trading your current home in......I don't know what the trade in value would be but it's worth checking on. Any way you do it your home will be worth more money once it is on it's own land and on a permanent foundation.....you might even add a deck to raise the appraisal value. Hope this helps!

Stacy Showman
Universal Lending Services
Wagoner, Ok
918-485-4047

another thing.......as a former bill collector, if you let the home "go back" that foreclosure will stay on your record for a minimum of 7 years and garnishment is legal in ALL states BUT Texas and even there they can get a judgement with hurts your credit that much more. The $4000 was probably all closing costs, that about average.