assumable mobile home mortgage

[suzie8730]

What is the name of your state? North Carolina

I have a mobile home which is 10 years old and recently I decided to sell it and move. I was told at the time I bought it that the loan was assumable. I called the finance company to make sure the loan was indeed assumable and was told that it was. This week I found a prospective buyer. I called the finance company back to request the paperwork for the buyer to apply to assume the loan and was told they would mail me the papers, but that I may still be held liable on the loan if the new buyer defaults at any time. This makes no sense to me. Why would I want to sell a home, sign over the title, not live in it and still be liable for the payments if the new buyer doesn't make them?

The loan was sold once or twice in the 10 years that I've had it so I have no idea what the original contract said, but I do know that I would NOT have signed the papers if I was told this upfront. I feel like there has to be a way out of this. How can I get a release of liability?

 

[Pfaffing85690]

by selling it to the buyer without the assumable rider.

Just sell the damn thing outright. Let the buyer get their own financing.

 

[suzie8730]

Thanks for replying. Yes, that would work perfectly. Except I need to unload it quickly and have little to no equity in it. Unfortunately, even though its in very good condition, value depreciates on mobile homes.

The couple that wants it is a young couple just starting out and is especially interested in the low monthly payment on the assumable loan.

Any other ideas??????

 

[Pfaffing85690]

Then the only other thing you can do, aside from assuming the risk yourself from an assumable, is to owner-finance for the same payment that you are paying now pluse a little more.

Just remember, with this option you will also be assuming a risk.

 

[JETX]

Suzie, an 'assumable loan, simply means that the new owner ' part of a loan means that you are transferring your loan to someone else (who 'assumes' your obligation). This does nothing to waive your obligation to repay the loan in the event that the 'assumer' breaches the assumption and stops paying.

This process of you being liable is an old carryover from the days when lenders did not require a credit application and approval of the buyer..... the seller was basically the 'guarantor' on the note. This provision though is less common now since most of them (assumable loans without buyer approval) are virtually extinct'.
buyers credit review.

Does your mobile home loan require buyer credit approval?? If not, then ask the lender if they would consider buyer application and waive your future obligation. And if you don't want to do that due to time or buyers chances of qualifying..... then you need to be prepared to protect the lender.

Another thing..... if the lender still requires your 'protection', ask the lender when this obligation will end. Most of them waive this requirement once the buyer has sufficient equity to protect the lender.

 

[suzie8730]

Thank you for explaining it so clearly. I think I understand more now, but my lender DOES require the folks assuming the loan to fill out a credit application and be approved by them. According to what I'm finding out, they still won't release me even though they may approve the buyer. I just don't see how that can do that. This seems like it should be illegal or something. If they approve the buyer, I should be released. Especially since this clause may NOT have been a part of my original loan. (They bought my loan). I have requested a copy of my original loan to see if its mentioned anywhere in there. If its not, can I fight it? How can they hold me to something that wasn't in my original contract? Grrrrr...... I feel like I'm being scammed.......

I have a good mind to tell them to come pick it up and shove all 80 foot straight up their @$$....

Thanks for your help.

 

[Pfaffing85690]

I have a good mind to tell them to come pick it up and shove all 80 foot straight up their @$$....

If you're a redhead boy do we have the guy for you

 

[JETX]

"If its not, can I fight it?"
*** Of course you can fight it. All you need to do is put aside about $5000 for legal fees and get an attorney to file a lawsuit against them. Then sit back for a year or two for your lawsuit to wiggle through the legal docket load. Then, you can have your day in court to argue how unfair you think this is.

 

[HomeGuru]

Yippeeeee, another trailer story.

 

[suzie8730]

Wow. Ok.

Well I guess the bad guys win again.

 

[HomeGuru]

Not all finance companies are bad guys.

 

[suzie8730]

Maybe not. But it does seem to me that if I didn't sign anything agreeing to those conditions at the time the loan originated, that I shouldn't be held liable for the new owners. Their name will be on the title and they will have approval from the loan company. Why do I have to be in the mix at all?

I just requested and got a copy of my original loan agreement. The only thing in those 6 pages at all that refers to this issue is a statement that says "Assumption: Someone buying my Manufactured Home may under certain circumstances be allowed to assume the remainder of the contract on the original terms."

Thats it.

And I've already paid in $10k more than the house cost. The remaining balence is just more interest (or principal, however you look at it). I realize they make their money by interest paid in, but even at this point, they've already recovered their original loan amount plus interest. They aren't risking anything at all. It just seems to be a way to hold as many people as possible responsible and I just don't think that should be allowed. It would be different if I had just bought it and wanted out, but thats not the case. I don't want it holding me back from buying a home in the future or having me liable for this debt until its paid. Maybe I just don't understand finance.... or the law... but I do understand right and wrong, and this is wrong -- even if its legal.

Thanks to you all for discussing it with me. It helps to vent.

 

[HomeGuru]

Ok, we got the point.