Do You Buy Mobile Home Notes (Paper)? We Provided Owner Financing in Arizona

Traditional (and even private) financing is almost impossible to get for mobile homes… especially older ones.  So, it’s very common for people to offer terms (seller financing) when selling.  Here’s a recent email:

“Dear Dawn,

 I have a financing question for you.  We have an older mobile home (1969) that we just sold, owner financing with a balloon in 10 years.  The buyer asked me what her options were in 10 years if she doesn’t have enough money to pay off the balloon.  Other than not buying it, I told her she would need to find private money.. or can the note be sold?  Does anyone buy notes on older mobile homes?  The balloon amount is $47,000.  Any information would be appreciated.”Sue

Hi Sue,

There are few buyers for mobile home paper, but there are some here and there.  Balloon payments these days almost guarantee that the note holder will either be foreclosing or restructuring and extending the loan.

A fully amortizing note over the shortest time possible is usually the best option, but let me ask you a couple quick questions…

  • Purchase price?  (did you get above market on this older mobile home?)
  • Down payment?
  • Credit score?
  • Interest rate?
  • Loan amt and monthly payment?
  • Rent space?
  • Type of park?

If you end up finding someone who wants to buy the note, they will ask you to take a pretty steep discount in general.  So, if taking .50 to .70 cents on the dollar doesn’t sit well with you, then just hold on and know that you’ll have to extend your terms or foreclose when the balloon comes due.

Hope that helps!


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