Ok, I have heard so many different things I can’t be sure of anything anymore?
GERALYN S asked:
I will put this question out there and hope for a more definitive answer. I own a manufactured home on land that we put on a foundation and were told that if we did that it would equal a site built home and go up in value. We also had an ARM that we did get fixed, but it is still at 11.3%. We now cannot get any type of refinance simply because lenders won’t touch these types of homes. Also it has gone down in value dramatically. When we moved into it in 2003 it appraised at 93,000 and we had appraised again in 2007 and it went down to 85,000 and that was before the home prices hit rock bottom. So I guess my question would be would it be for us to try to sell it for what we owe on it, which is about 74,500, and get out from under it before we are completely underwater, or keep it and hope things get better? Any suggestions would be greatly appreciated. Any other manufactured home owners out there have any input on this? Thanks!
I also forgot to add that the home is affixed to the land, making it a land/home package, so there is no way to separate the home and sell it outright even at a loss.
Rosa
I will put this question out there and hope for a more definitive answer. I own a manufactured home on land that we put on a foundation and were told that if we did that it would equal a site built home and go up in value. We also had an ARM that we did get fixed, but it is still at 11.3%. We now cannot get any type of refinance simply because lenders won’t touch these types of homes. Also it has gone down in value dramatically. When we moved into it in 2003 it appraised at 93,000 and we had appraised again in 2007 and it went down to 85,000 and that was before the home prices hit rock bottom. So I guess my question would be would it be for us to try to sell it for what we owe on it, which is about 74,500, and get out from under it before we are completely underwater, or keep it and hope things get better? Any suggestions would be greatly appreciated. Any other manufactured home owners out there have any input on this? Thanks!
I also forgot to add that the home is affixed to the land, making it a land/home package, so there is no way to separate the home and sell it outright even at a loss.
Rosa
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2 Responses to “Ok, I have heard so many different things I can’t be sure of anything anymore?”
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Donna
Well I’m not sure where you live so I can’t say for sure if that valuation is totally correct but it’s entirely possible that the economic grief the rest of the world has been feeling is affecting the value of your property. While some markets have seen declines in values, others have only seen a slow down in the market. I would advise you to look around where you live and determine if all the property values have decreased similar to your has - if so then this is an indication of either a market affect in your area that has affected the entire area and could possibly recover or perhaps your market has been affected in another way like perhaps you lost some major industry lately and this is affecting the property values in your area.
If you are still employed an can still afford your home you may be better off to hold out until the economy recovers then sell your home once the market warms up again - or you may feel like selling now is a good way to get out but keep in mind if you get out now, you’ll be loosing lots of money.
Karen
It is time to stop your losses by getting rid of it now, and then go buy an investment that will go up in value.
.It must have been a Trailer Salesman or an Agent desperate for a sale that told you that. Whenever someone tells you Trailer Houses go up in value, ask that person if they live in a Trailer House. That is your answer to that statement.
Trailer Houses have never held their value. There have been times when they went up slightly, usually right after being set up, but then dropped dramatically afterwards. They are not the quality of site built homes, nor will they last as long as site built homes. That is why they go down in value. They are “throw away housing”.
If you hang on to it, it will continue to drop in value until it reaches a point where the cost of removing it will be deducted from the value of the land it sits on.
The only problem being no bank will loan on it to a potential buyer. You may have to carry the paper yourself. Usually a Land Sales Contract is set up for 25 yr amoratization, but last only 5 to 7 yrs because the buyer refinances or sells and you get paid off.
To avoid legal hassles down the road, Set up an escrow account where the buyer pays the escrow company each month. The escrow company pays the existing mortgage each month, also the taxes insurance. Then they send the what is left of the buyers monthly payment to you.
An escrow company usually charges about $5 - $10 dollars a month for this service. The cost also includes a statement for your taxes at the end of the year showing how much was return of original investment, how much was interest income, and how much is capital gains income. Well worth the book keeping cost alone.
Usually when you carry the paper yourself, you can charge a couple of percent higher interest than banks charge on mortgages because you don’t require as big of a down payment or as strict on the credit rating.
The down side on carrying it yourself is, If the buyer stops making mortgage payments and you have to foreclose on him, you will need to make payments on the existing mortgage you have, from the time the buyer stops making payments until you sell it again.
Over the years, I have carried the paper on many houses, and have made money on all of them.