If you still owe money on a manufactured home with a mortgage but want to sell it, you might worry about having difficulty finding a buyer, or jumping through endless financial hoops. But don’t despair—selling a mobile home with a mortgage is actually done quite often, and you can do it, too.
Many homeowners don’t know that there are several ways to sell a mobile home that has a mortgage on it, including cash offers and selling to the community owner. We’ll give you a brief introduction on the top 3 ways to sell your mobile home, the decisions you’ll need to make, and the caveats you need to be aware of.
Selling Independently
There are two other major ways to sell a mortgaged mobile home without getting the bank involved. The first is to sell the mobile home for a price that pays off your mortgage. It’s among the most desirable options, but it can also be tricky to pull off successfully. The newer your mobile home, and the less you owe on your mortgage, the easier time you’ll have selling it for a sufficient price.
The second option is to sell your home for the best offer you can get and cover the difference out of your own pocket. This can involve a painful hit to your wallet, and many people won’t have the savings to cover the difference. Sellers with good credit may be able to take out a short-term loan to pay off the remaining balance, but be aware that doing so may affect your ability to get a loan on your next home purchase.
In either scenario, don’t underestimate the power of an optimized manufactured home listing with great photos and complete information. MHVillage offers a variety of selling tools to make your listing shine, including simple photo uploading and easy-to-use forms that help ensure that all the key information is present in your listing.
Paying Off Your Mortgage
It’s always better to pay your debts when you have the ability to do it. So, first, know that if you’re not in dire financial straits, it might be easier to pay off your mortgage than you realize.
With a little bit of financial discipline, you may be able to increase your mortgage payments and pay it off early. Simply adding $50 to $100 extra to your monthly mortgage payment can slice several years of debt off your mortgage, and even $20 a month can get you there sooner than you might expect.
These options can require some sacrifices and belt-tightening, and they’re likely not viable for people who need to sell their manufactured homes immediately or who are unable to work. However, the upside is obvious: Once your mortgage is paid off, you’ll be free to do as you please with your home, including selling it on your terms.
Short-Selling a Manufactured Home
If an early mortgage payoff isn’t in the cards for you, it might be time to look into negotiating a short sale of your manufactured home. In a short sale, a homeowner strikes a deal with their mortgage lender to sell the home for less than it’s worth, with the lender collecting the proceeds of the sale as the final payment on the mortgage. It’s a good option if the value of your mobile home is less than you owe in mortgage payments.
The biggest advantage of a short sale is that it can prevent foreclosure. Lenders generally want to avoid the cost and hassle of foreclosures, and you want to avoid a hit to your credit score. To be successful, work with your lender to find out exactly what they need, and keep in touch throughout the process, as cooperation between the homeowner and the lender is key to a successful short sale.
Know the Facts
No matter which option you choose for selling a mobile home with a mortgage, it makes sense to do your research and know your options before you dive in. Make sure to know the mobile home book value of your home so you can set a realistic price, and take your time to research your market before deciding which option is best for you. MHVillage makes it easy, with a free Datacomp market-based mobile home appraisal for every seller who lists a manufactured home on our site.
Selling through MHVillage can provide you with options and resources that you won’t get anywhere else. We’re America’s most active mobile home listing site, with over 50,000 visitors per day, and we offer our users powerful options to create great listings and connect with potential buyers. If you’re selling a mobile home with a mortgage, there’s no better place to do it.
