OfflineWe have a neighbor that has his home listed and is 3 payments behind. It is a manufactured home (technically mobile home). Listing agent says the bank could just come and repo it, much easier than a regular foreclosure according to her. However, they would have to tear garage down to get it out, and I can't see that happening. We are interested in taking over the payments for what he owes on it or doing a lease option from him for what he owes. He just wants out and says he is going to declare bankruptcy in the next few weeks if he can't sell. We want to buy it for ourselves. He owes 77K but the garage, house, and everything is worth over 100K. How could we structure this so that we don't have anything out of pocket? Thanks!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Is this mobile home real or personal property? We're in Fl. & most mobiles are personal property. They are just like cars, they have tags & must be registered every year; if that's the case the bank can repo it just like a car. If it's real property that they have to foreclose. Here the owner would have "homestead" for property taxes also.
As for lease option or subject to, if it is for yourself & you're going to live in it, then I would do subject to(& record it that way), the only problem is that you would have make up his three missed payments; & then just pay the mortgage normally(the good thing about that is no qualifying for a loan). If you wanted it rent it to a tenant buyer as a lease option, then do a Greg Murphy & have the tenant buyer put down an amount of money to cover the three missed payments plus some money for your pocket, then charge rent one or two hundred more per month than the payment to the bank.
I'm not sure if it's real or personal property. How would I find out or figure it out? They don't own the land but do own the garage, deck, fencing, and all the other add ons. We want to buy it to live in, it's 2500 square feet and a beautiful home. There is a title on it, just like a vehicle, however, property taxes are paid each year as well (I suppose because of the garage, etc? How would I set up a "subject to" legally? Thanks so much!!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
It appears it's personal property, since it not only has a title (like a car) but the property taxes are probably for the land, garage, deck, etc. So I think the bank might just repo it. We have a lot of yards that have repossessed mobiles in them. Better get legal counsel first.
Thanks so much! We are going to call the bank tomorrow and see if they will work with us to take over payments and nothing down. If not, we could wait and buy it off the bank. If they try to repo it, they will have to tear the garage down or the neighbor's house. It's not set up like a mobile home park. It's just like any other subdivision only with manufactured houses instead of stick built.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT