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Manufactured home with land as collateral

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?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 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

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] against the same land or property.

Thanks,

Sara.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 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?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello Ronica,

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

Have a look at it.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can we use land as down payment on a constuctional loan??

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helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Tecia.

Yes, you can use land as the down payment on a construction loan. If you have been on the title to the land for quite some time, the lender will conduct an appraisal on the land. The difference between the land appraised value and the cost of construction will be considered as the down payment.

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have some land that is paid for and want to buy a modular home in nc can i do this I recieve unemployment benefits for income

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you sell the land and use the money to purchase the home out right that is a no brainer. But if you are looking for some type of financing to be involved I highly doubt a lender would consider a loan with no established method for long term repayment. One of the first questions when applying for a loan is where do you work and how long have you been employed there? There would be a very good chance with today's economy that you may not be back to work by the time your UC benefits run out and then how would you repay....be careful.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

CAN I [url=http://www.mortgagefit.com/refinance.html]REFINANCE[/url] MY MOBILE HOME WITH UNEMPLOYMENT BENEFITS.

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

It's not possible to qualify for a refinance with unemployment benefits. You must show your lender that you have been employed for at least 2 years before your lender approves the loan. Without any fixed source of income, it's going to impossible for you to qualify for a refinance loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

With bad credit can i buy a mobile home and use my five acres of land to get the mobile home

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

With a bad credit, you won't be able to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url]. You'll be have to improve your credit score first and then apply for a mortgage. Check out the given page in order to know some steps to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my scores are 598 600 620 i have paid for land about 6 acres . i have someone kin to me that will co sigh with a lot better score please help . i have a moblie home i want very bad

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If you have a stable income, you'll be able to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url] with the help of a cosigner. I don't think you'll face any problems in getting a loan.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have an acre of ;and that is completely paid off..in my stepfathers name..he has excellent credit and mine is 522..can we get a used modular home brought in..and the existing one scrapped by putting a small down payment down,and using the acre as collateral

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kim!

Welcome to the forums!

If your stepfather co-signs for the loan and both of you meet all the other lending criteria, then you will be able to get the mortgage.

Feel free to ask if you've further queries.

Sussane

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