Manufactured Mobile Home Note Question

[tifanyc]

My father wants to sell his manufactured mobile home (permanent land) note. Can he expect to recive a lower price for this type of note vs. a SFR permanent structure? If so, why?

[David Oxhandler]

All notes regardless of the security, are discounted when the sell. It is not unusual to discount a note as much as 20% to cash it out.

The value of any note depends on several factors. The biggest is the record of the payee. If the payments have been made for years with out any hitches the note will be more valuable than a note that has a spotty payment history.

Another factor is the loan to value ratio. If the value of the property is grater than the balance of the loan the note holder has greater security. The amount of time left (number of payments still due), the interest rate, the location of the property are all factors in valuating a note.