To Mr. Murray

[Tina]

Dear Mr. Murray:
I have been coming into this website for some time now and have read much of the advice and/or comments you have made in helping others with issues they have in the MH industry. You seem well educated in this area and I am hoping you can give me some answers. I will try to make this as short and sweet as possible. I live in Illinois, own a stick built home, have kept my house payments current and on time. I have to file bankruptcy this month (mainly credit card, hospital bills and a unsecured loan), but can keep my house and car exempt from the bankruptcy because I also have a child with a disability. My finacee filed bankruptcy last year due to a very messy divorce. He did not have a mortgage involved with his bankruptcy, just credit cards his ex-wife went nuts with. He quit his good job he had in Texas and relocated back to Illinois after his divorce. Needless to say, he has had a difficult time finding adequate work here in Illinois. We have the opportunity to move back to Texas (east Texas) and he will go back to work at his old job making twice the income he is making in Illinois. I have been going online and looking at MH as an alternative to paying rent or buying a stick built home. I want to put a MH on our own little piece of land. I will not even consider renting space in a MH park. Please keep in mind, I had excellent credit up until two months ago, then it all came crashing down. I have kept a few credit cards, my vehicle loan and home out of the bankruptcy to have some decent credit behind me.
My first question is: What are the chances of getting approved for a loan so soon after filing bankruptcy? How much of a down payment will we need to get approved? My fiancee's income will be very good for the area we will live in and we will have no problems with being able to make the payments. This bankruptcy is a one time thing. Never...ever will we get ourselves into this situation again. My second question is: I have been looking at the Patriot, Palm Harbor and Clayton homes. I know Clayton has their own finance company which may or may not be beneficial to us. We want to finance a home and land package deal. Out of the three manufacturers, which one in your opinion would be our best situation? I want to upgrade from the standard package that is offered in the homes. Such as, 2x6 walls, insulation, carpeting, etc. Can you please give me some advice on my situation or am I dreaming up something that is impossible here. Thank you for your attention in this matter.

[rmurray]

Impossible for the time being...

You have not mentioned what type of bk...but it sounds like you and he filed chapter 7..If so most great lenders require 24 months of time to elapse and the rebuilding of credit..

Your friend is the closest to qualify...Best approach would be to rent for about 18 months...not a bad idea with a new job and new location anyway..During that time make sure he is building credit...name on the lease...name on the utilities...always pay by check..and save all records including the bills....

While establishing credit...check out the area..look for land you will want to settle on...If you find some and the developer sells as owner finance...buy it..pay your payments always on time...would be helpful if the land is bought 12 months from the time you want to put home on it...If you do all of the above...he..and maybe you will qualify for the best loans..With little or no cash down...

Begin looking at homes any time....educate yourself about the industry...decide what you want in a home..then when you are ready..it will be easy..

This kind of financial disaster take a little time to recover from...Be patient and you will be able to get the best deal out there...

Palm Harbor has its own finance source too....but do not jump at the easiest deal (which might be Clayton repo)..just because it is easy...think of your long term...build your credit..check them all out...Texas is Palm Harbor country and you will have lots to chose from...

Also..almost all credit files of folks with bk are in error...Request copies of his soon...your once the bk is final...start the process of challenging the errors...this can take many months...but you have the time..

Also..when you move be sure you both have complete copies of ALL of your bk papers..they will come in handy later..

Good Luck with the move..

[Tina]

Dear Mr. Murray:

Thank you for your reply and the advice you gave. We will get started on this immediately. It is an unfortunate circumstance (bankruptcy), but one that could not be avoided. It is now a matter of picking up the pieces and starting fresh with a clean slate.
Again, your reply is greatly appreciated. Thank you.

[rmurray]

Good Luck...your new move will make it easier to move on..