can I take a personal loan using collaterall

lonewolf4111 · Joined: 15 Dec 2007 Posts: 1 1.84 Dollars($)

Hello,

I have fallen behind in my student loan and credit card payments. I have a credit rating of 500. I own a mobile home, it is fully paid for. It is a 1963, but if very good shape. I paid 33,000 for it :but homes of the same year but smaller sizes have sold in the same community for 50,000 ( in other words I am not sure of the real value ).
I am now making regular payments on the student loan but I am very far behind on the credit card.

Long story short the credit card company has offered to let me pay half the amount to settle the dept ( 6,000 ) and I would like 4000 to catch up on car repairs, and other bills. I am looking for 10,000.

Is it possible tp put up this mobile home as collateral and get a secured loan with my credit score ?
I have a civil service job and I have been there for 6 years, it is very secure and my income is 51,000.
Many thanks for any advice and help.

alex · Posted: Sun Dec 16, 2007 12:27 pm Post subject:

Hello Lonewolf and welcome,

You can try American General for a personal loan using the mobile home as collateral. I know a long time ago Beneficial and Household Finance Corp. used to take securtize personal loans against mobile homes. You may have to find a mobile home lender that will lien your mobile home. There are some out there but they do require a higher credit score. I recommend you make a few phone calls to mobile home lenders or American General to see where they can lead you. Good luck!

jenkin7 · Joined: 04 Jun 2007 Posts: 887 132.55 Dollars($)

Hello Lonewolf,

Is your mobile home placed on a permanent foundation?

Then you may try for a home equity line of credit (HELOC). Generally, HELOC is a good option to meet ongoing cash needs. This will allow you to draw funds whenever you require, up to a certain pre-determined limit. Even the interest that you pay is often tax-deductible.

The interest rate for a HELOC is initially lower than the usual home equity loan but the rate might fluctuate according to the prime rate. Since you have a low credit score, the interest rate offered to you is likely to be a little higher.

If you want to go for a personal loan, then your mobile home will be treated as a personal property and you may not use it as a collateral. And the interest rates for these loans will be much higher than what you get for a HELOC.

There are lenders who are willing to lend to people with poor credit but you may have to shop for a while for lenders to get a reasonable rate.

Guest 0.10 Dollars($)

But Alex, isn't a mobile home taken as personal property and not as collateral when it comes to personal property loans?I'm confused with this, does anyone else have anything to say on this?

jbarto65 · Joined: 04 Nov 2007 Posts: 591 4.82 Dollars($)

You should be able to take out a loan on it just as you would as long as you have the title and the deed, you will need to surrender the title as collateral. Make sure all your taxes and insurances are up to date, they will research this before they give you a loan.

If it is on a permanent foundation you will get a better rate, no chance of you moving it then.

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