Expert: Dick Dennis - 8/17/2008

Question
QUESTION: I need to know how to get out of my mobile home and into a real home. I owe 40,000 on a mobile home that is valued at 26,000. I am 10yrs into a 30 yr note at a 9% interest and Green Tree will not re-finance. My wife and I have been looking at homes in the 125k to the 160k range but do not know what to do with the other home. We don't want to settle for a cheap home, we are both in our upper 30s and want something decent.We can comfortably afford a home around 135k but there is the 40k note looming over our heads that is located in a trailer park. Even if we could get a loan for a new home and include the 40k that would put us at a loan of 175k that we could not afford even if we sold the mobile home for 30k. I would be willing to take a hickie on the home but just don't know much about this. I have asked other realtors in the area and haven't come up with any solutions to this problem. Any advise would be appreciated.

ANSWER: My guess is that you can rent out the mobile home. If you would walk away from it and let the bank take it back, it would ruin your credit for buying your next house. If you can afford $125,000-$135,000 loan comfortably, then you definitely do not want to let the mobile go back to the bank. There might be someone out there who can only afford a $26,000 to $40,000 mobile home and you can sell it to them on a lease/option situation. Or simply rent it out for a market rent. Ask the park manager what it would rent for. As long as you are still making payments on the mobile, then it would not get in the way of buying a "real" house. Somewhere there is a Realtor near you who knows what they are doing in the business and can help you in this matter. If I was near you, I am sure I could help. But I suspect you are somewhere back east. I'm in Calif.    I do wish you well.

Dick Dennis        dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Well, I know the park owner will not let me rent it out. If I sell the house and the new owners are going to stay on the same lot, the land lord must approve them.
I thank you for your advice.

Answer
I figured that would be the case, George. Typical. Just get yourself a good credit buyer and the landlord will approve your deal. Tell them, if they do not cooperate, you'll just let the mobile go back to the bank, THEN what kind of problems would they have? you tell them. I wouldn't be surprised that there are others in the park who are having similar problems. Check around. See what others have done about it.

Dick