Sell My Mobile Home With a Mortgage

Are you looking to sell your mobile home and you still owe on it?  Discovering that you need to sell your mobile home quickly for a job relocation, divorce or loss of income can be difficult.  This is especially the case when you owe a mortgage against your mobile home.  In this article we will discuss the ins and outs of how to sell your mobile home with a mortgage.  

                Mortgage Or Land Contract Mobile Home

Whether you have a mortgage or a land contract on your mobile home there are steps that you need to follow to figure things out with your loan.  Here are the first steps that you should take:

1. Contact your mortgage company or the person who holds your land contract.  Find out how much you still owe on the home.  The lender should be able to provide you with a printout showing exactly what is owed and how long that balance is good for.  Mortgage balances can change daily so you will want something that is good for the next 15 days.

2. Next you will want to figure out how much your mobile home is worth. To figure out the current market value you will need a mobile home market value report or an appraisal.  One way to do this is to look for what other homes have sold for in your area. 

3. If you have the funds available, consider paying off the mortgage before you try to sell the home. This is called having a clear title.  Having a clear title makes the home easier to sell and you can do it quicker.  When it comes to paying off a loan you can wait up to 30 days just to get a clear title.  Visit our article Clear Title Meaning for more information.

4. Now that you know what the home is worth and you know your mortgage balance you can start to advertise the home for sale. If you do decide to keep the balance on the mortgage, make sure you are upfront with any potential buyers that you do owe against the home.

5. When you do find a buyer you may need to work with their lender to satisfy your loan. You will need a purchase agreement between you and the buyer to provide both mortgage companies. 

If you are considering a mobile home mortgage, check out our article Mobile Home Loan Calculator. 

     How Long Does It Take to Pay Off a Mobile Home

There are several things that will affect the time it takes to pay off a mobile home.  These factors include: the interest rate of your loan, the amount of the loan and the terms of the loan. 

Mobile home loans are typically taken out for 10 to 30 years, which is similar to a stick built home.  There are some lenders who offer shorter or longer repayment terms depending on the borrower’s financial situation.

                                  Short Sale vs. Foreclosure

If you discover that you owe more on your mobile home than it is worth you still have options.  Depending on how long you have paid on the mortgage some banks will do what is called a short sale on the mobile home.  To do a short sale you would need to contact the bank manager and discuss your options.  A short sale simply means that the bank will allow you to sell the home for less than what is owed. 

       How Do I Sell My Mobile Home If I Still Owe On It

Short sales do tend to hit your credit but it is much better than filing for bankruptcy or a foreclosure.  Money situations happen to all of us, and the banks are accustomed to dealing with this. 

                             Loan Mortgage Mobile Home

Mobile home loans really come down to a borrower’s payment schedule.  If the borrower makes larger monthly payments than are required, the loan will be paid off quicker.  Also if you increase the frequency of the loan payments this can help as well.  Example:  If you have a monthly payment due each month paying weekly will cut time off from the loan. 

When considering a mobile manufactured home loan just make sure that you know the loan terms and calculate the total cost of the loan.  It is important to know all the facts before you sign on the dotted line.  It is also recommended that you pay close attention to the interest rate of the loan.  An adjustable rate will fluctuate with the market and this can get you into a financial mess quickly.  Check with your mortgage company on a fixed rate loan.  

                    Trade In Program Mobile Home Mortgage

Some mobile home dealers offer trade-in programs for mobile homes.  This is where you can trade in your current mobile home for a newer unit. 

Each dealer will have different programs so you should contact them directly to discuss the options.  The dealers will assess the current value of the mobile home and this will go towards the balance on the newer mobile home. 

The amount of money that you receive for your current mobile home will depend greatly on its condition, age, and the current market conditions.

If you owe more than the dealer is willing to give you for the mobile home this balance can be carried over to go on top of the new mobile home.  You will need to discuss this option with the dealer.  Another option would be to pay the difference off if you have additional funds, which would be better in the long run.

                        Paid Off Mobile Home Now What

Well congratulations are in order.  Paying off a loan is an amazing feeling.  Being debt free is just the start here are some ideas once you have paid your home in full.  There really is only a small percentage of the population that owns their homes free and clear.  

                                 Lien on a Mobile Home Title

The first thing you will need to do is to make sure you have a clear clean title in hand.  Once you pay for your home in full the mortgage company should send you a clear title.  Make sure you get the title or at least a release of lien from your bank.  A release of lien is a paper that you can attach to the title.  These typically come in the mail to you approximately 30 days after payoff.

Next you will need to update your insurance policy.  Insurance companies name the bank on your policy because they have an interest in the home.  Now that you have paid the balance in full you will want to update the records. 

Another option you can consider would be to refinance a loan to do home improvement projects.  It really is best if you just save up for these types of projects, however.  Financing these types of improvements can cost you thousands in the long run. 

                               Quick Sale Mobile Home

If you need to sell your mobile home quickly no matter the situation.  If you are behind on taxes, lot rent or even mortgage payments we can help.  Click here and fill out the information on your mobile home and someone will contact you shortly. 

We are dealer / brokers for mobile home and we do not need to be approved by your park or your mortgage company to purchase your home.  We can help in most situations. 

Conclusion

Selling a mobile home with a mortgage can be more complicated, however if you know what to expect you can ease through it.  Getting your ducks in a row before you sell the home will save you time and money. 

Be sure to check out our article on How Much Does it Cost to Prepare a Mobile Home for Land.