Mobile Home Financing & Loans

Mobile home financing is a sales tool. It is used to close the deal.  The big manufacturers all have captive finance companies that provide the funding for new home purchases.  Many of these are made wih small down payments, to buyers with credit issues.  Like car sales, there are lots of ways the salesperson can fog up the details so the buyer really doesn't know what they are signing up for. 

All is well as long as the original buyer is making the payments.  But then something happens.  There is a job loss, a divorce or some other life changing event and the homeowner needs to move.  No problem, right.  They have been making the payments for several years so they will just sell the house and get on with their lives. 

They find a buyer who goes to get financed and now ugly reality sets in.  The new buyer is talking to the bank, not the mobile home finance company!  The bank is looking for clean credit and 20% down.  They want an appraisal but the house isn't new any more and maybe it has a few nicks and dings, so the appraisal comes in low.

In my part of the country (New Mexico) property values in many mobile home areas have actually declined over the last five years.  The result is the owner can't sell the house for what is still owed, much less make a profit.

People make the payments as long as they can, but at some point they have little choice but to walk away no matter what it does to their credit.  The foreclosure wheels move slowly and I see empty homes sit for years before the lenders actually do anything with them.  I am convinced some lenders don't even know where the homes are. 

If you seriously want to learn about loans, lending and investing in a way that will let you achieve financial freedom I encourage you to visit my Invest in Debt website and see what you can learn there.