You might be asking yourself, “how do i sell my mobile home if still owe on it?” We work with customers all the time that want to sell their mobile home or manufactured home before they have paid off their entire loan. If fact, many home owners rarely have their home paid off.
There are a few things to consider before selling your home if you owe a balance. Let’s take a closer look to help you get prepared.
1. Get the contact info for your lender, company or person that you are making payments too. If you make payments online you can usually log into your account and find out your current balance. You can always call your lender and ask for a “30 day payoff”. If you don’t pay your account online, the lender might tell you the balance over the phone, or they might only be able to mail you a statement via snail mail. You’ll want to get something in writing from your lender. Over the phone balance are OK when you are thinking of selling. But over the phone amounts won’t work when it comes time to actually sell. Everything needs to be in writing.
2. Setting your list price. Now that you know the exact balance of your loan, setting the list price is very important. Get out a pad of paper and start running the numbers. You’ll want to figure out how much money to need to have in your pocket after the sale is complete. For example, if you owe $50,000 on your mortgage and you NEED $30,000 in your pocket after the sale, you’ll want to list the home higher than $80,000. Why? Because you might have realtor fees, closing costs, property taxes, utilities, etc.
3. Call a professional that specializes in mobile homes / manufactured homes. Now that you have figured out some numbers, contact a licensed and bonded company, like Helping Hand Equity, that specializes in mobile home and manufactured home sales to give you a market value of your home. Sure, you could call any realtor but if the realtor doesn’t specialize in mobile homes you might be missing out. Selling a mobile home and manufactured home is much different than selling a traditional home. Make sure you do your research before hiring anyone.
4. Closing the transaction. If you hired a company like Helping Hand Equity to help you sell your mobile home, that company will facilitate the transaction from start to finish. That means we will advertise your home, take calls, pre-screen buyers and get them pre-approved for financing and handle the final details to get your loan paid off. We will contact your lender to get payoff instructions. If the buyer needs a loan to purchase your home, we will work with the buyer’s lender or we will work with a local title company to complete the transaction.
What if I’m selling the home myself and the buyer is representing themself? If you decide to sell the home yourself, it would be best to contact your local title company. The title company will contact your lender and will process the papers between you (the seller) and the buyer. Of course this is not a free service. You and the buyer will both have to pay fees for this service. In the Vancouver/Portland Metro area the price starts at $700 and goes up from there. That means the seller will have to pay $700 and the buyer will have to pay $700. Again this is just a starting price. Call around to different title companies and find out how much they charge for their services. Typically, the title company will take their fee out of your sale proceeds.
Hopefully we have answered your question, “how do i sell my mobile home if still owe on it?” If you need assistance with selling your mobile home or manufactured home, feel free to give us a call at 360-215-7372, or fill out our online form below. Thanks for reading!