refinance a doublewide trailor?

Question

we have a gentelman that is leasing a doublewide from us but its not on our land the deal was if he had it moved he could take over the payments and have it put in his name.we were giving him 5 years to do so.well its been 10 years now and it is still in our name is there any way we could refinance with it not being on our land the intrest rate is really high on it now like 10%

Answer 1

Manufactured housing not permanently attached to land that you own (i.e. permanent foundation) is not real estate. It's personal property, and is a completely different financing process.

It's much closer to the situation for a vehicle.

You can refinance them (just like cars), but the rules are completely different.

The main concern is the age of the unit. Nobody wants to finance ones built before the federal earthquake standards of 1979. Frequently, there are significant breakpoints in financing that depend upon the age of the unit, at 5, 10, and 20 years.

For these reasons and others, these units typically do not appreciate much in value - far below the rate of inflation, if at all.

Answer 2

Trailers generally can not be refinanced because they decrease in value over time (unlike stick built homes that generally increase in value over time).

Is he paying the full value of the loan including interest? If he is paying on time and in full, then he should purchase it from you outright. Have you discussed it with him lately?

If you are having trouble with him paying on time or in full, you may need to get a lawyer involved. Because the trailer has been moved to land that is not yours, it could get pretty messy if you try to take reposession it.

Answer 3

Given the age, it would likely be a higher interest rate by now, especially as it's not tied to the land. Check with local lenders, but don't get your hopes too high.