We bought a home 5 years ago and we are trying to sell it. We recently discovered that the loan we were given wasn't a mortgage, and the back of the loan says that "collateral not to be used as primary residence". That's confusing, we live in a manufactured home in a trailer park, is this standard procedure, we are upset because this means our loan is now not assumable, and it's really hard to find a buyer. Does anybody know if this is normal, or was I suckered into the wrong type of loan? Can I get in trouble for this, and will this affect selling my home?
2007-12-13 17:45:47 · 5 answers · asked by contenteeyore 1 in Business & Finance ➔ Renting & Real Estate
This is either a vehicle loan or some other piece of property was put up for collateral. It is hard to tell without reading the whole document.
Few home loans are assumable, they have to specifically state that they are. This statement is not what determines that. Since you pay this loan off at sale you should not get into any trouble with it.
2007-12-13 21:05:54 · answer #1 · answered by Landlord 7 · 3⤊ 1⤋
First, why are you buying a house with your boyfriend? Why don't you get married, then buy the house. Get the loan in both your names and the title in both your names (as man and wife). Have you hired a realtor to represent you? The Seller's realtor represents the seller. He/she will NOT be looking out for your interests. You need to talk to a realtor. Your relator's fees will be paid by the home owner. Your realtor will answer all these questions. You can afford $400 a month? Your mortgage will be much more than that. You have principle and interest ples home owner's insurance and property taxes. Don't forget that your utilities will go up and you will have other costs (lawn care, water and sewage bills, home owner's association dues, etc.) Finally, do you have a 10% to 20% down payment plus another 5% or so to cover closing costs, inspection, etc.? Do you have an emergency fund equal to 3 to 6 month's expenses? You financed a car. Have you paid it off? I would try to go into a home purchase with little to no debt. In the future, don't finanance a depreciating asset like a car. Save up and pay cash. Then there's the mortgage. If you can afford it go for a 15 year fixed mortgage, not a 30 year. If you can't afford it, don't just jump to 30 years, look at other options. what about 20 years? DON'T do any kind of variable mortgage.
2016-05-23 12:10:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Selling a trailer is like selling a car. There is a title for it and the buyer will want a clear ownership title. Renting the unit avoids payment to move the trailer to another rental lot. Your collateral is like a car if the loan is in default . They can take the trailer.
2007-12-13 18:02:54 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Technically it is not a mortgage but more like buying a car. I do not understand the collateral part though.
Even if it were a mortgage nowadays they are NOT assumable without the person qualifying for their own loan.
Trailers are a hard one and unless you put a substaintial amount down it is probably not even worth the amount you owe on it, they depreciate so rapidly.
Try renting it out.
2007-12-13 17:55:28 · answer #4 · answered by Anonymous · 1⤊ 0⤋
From that language, I have to wonder if you somehow got into a loan intended to cover a recreational vehicle (RV) as opposed to a place to live.
2007-12-13 18:02:06 · answer #5 · answered by acermill 7 · 1⤊ 0⤋