Manufactured home with land as collateral

katiemom75 · Joined: 30 Aug 2006 Posts: 1 1.31 Dollars($)

My mom and I inherited a house worth $67,000 and 20 acres. My husband and I have less than perfect credit and we learned we can use our land as collateral to ppurchase a mobile/manufactured home. The problem is my mom took a loan aout against the house several years ago that is not paid off. Is it possible to use the land as collateral?

Guest 0.10 Dollars($)

Hi,

This kind of collateral is basically used to secure the loan that the lender is going to provide.

Also the lender will also want his claim to the collateral property to be the first, i.e., there be no previous liens existing on that property, which in your case does exist.

Thanks

Guest 0.10 Dollars($)

Hi,

It might also depend upon the number of years left on the loan that your mom took.

If the loan is nearly ending the total term and the lender is satisfied that your mom is in a financial position wherefrom she would easily pay off the remaining dues of that loan, then the lender may agree to it.

Guest 0.10 Dollars($)

Hi Katie,

I agree with Devroe, the lender will always like to be the main lien controller of the property, as it ensures that he gets his prime share of any foreclosure proceeds(if it goes to that stage) before any other lending company can stake claim to part of the money.

Cristhian

sara · Posted: Wed Aug 30, 2006 8:31 pm Post subject: RE: Collateral for mobile home

Hi Katie,

You cannot use the entire land as the collateral as you already have a lien against it. But you can use the equity in your property as the collateral.

The equity = (appraised home value) - (the remaining debt against the land)

That means you will be taking a second mortgage against the same land or property.

Thanks,

Sara.

Caron

Hi,

It's true that you can use the land as collateral but you should have been making the payments in time. Otherwise, it's not possible to build up equity in your home. So, lenders will not be willing to offer you loan. Moreover, they will perceive you as a credit risk borrower who does not have a good payment history.

Second mortgage lenders may not be willing to provide the loan as they will not be able to retrieve the money if you default. If you fail to pay this lender, he has to wait till the first lender gets back his money. So, there remains a chance where the second lender may not get back his entire sum of money and hence suffer from financial losses.

Thanks,

Caron.

Guest 0.10 Dollars($)

my husband and i are wanting to get a new mobile home. My aunt and uncle just bought a house with 9.5 acres and want to give us 3 acres for collateral on our home but they have a lean on it. what do we do to use the land for collateral on our new home?

jenkin7 · Joined: 04 Jun 2007 Posts: 894 133.63 Dollars($)

Hello Ronica,

I have already replied to your query here http://www.mortgagefit.com/mobilehomeloan/land-collateral.html

Have a look at it.

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