Subject To strategy to sell a double wide my best strategy?

Question

@Jay Hinrichs

Hello BPers:

I was wondering if anyone had an opinion or advice on my situation. I am not sure what strategy to use to sell a doublewide mobile home I own on .3 acre in Cle Elum, WA.
Here are the details:
I have a $100,000 HELOC against the property with a Credit Union(I have used the entire amount todate). The monthly payment is $1,000 and it's on a fixed rate of 6.74%.

I want to sell it for $135,000 (which a local realtor recommends. Zillow estimate=$250,000).
I am considering selling Subject To(as I understand it) and so the buyer would take over the HELOC payments, and then for the remaining $35,000 I thought offering a seller carry back loan in combination with a cash down payment to make the deal more attractive. I'd like to sell it

Some of my concerns:

• I've heard it's hard for a buyer to get financing to buy a mobile home
• I'm not sure a bank would provide a loan that would cover the HELOC (100k)
• the holding costs could really add up if I can't sell - homes in the community take a long time to sell (6+ months+) normally.

I'm looking for a good selling strategy so any help would be greatly appreciated.

Gene

Account Closed · Answer

Hi Gene, it is very hard to get financing on a doublewide. Does it have elimination of title? I'm sure it must. What year is it? Is it on city water or a well? Is the HELOC against the property, the property and the doublewide or is it cross-collateralized? Subject To might work but I'm just not sure $1000 a month is going to appeal to very many people in the area. I'd try finding someone in Ellensburg or if it is on the river maybe I'd promote it as a hunting "lodge". ;-) Anyway, the Credit Union lent against it so it can't be too old. It's best to call a Mortgage Broker in Redmond or call BECU or WSECU or BofA and see what year the cutoff is for financing on doublewides. That will help.

Natalie Kolodij · Answer

This is a brutal spot because in Cle elum the rents on a double wide on land will only be around $1,000.

It's not a super high appreciation market.

It's not a super new mobile.

This seems like it may be just best as a live in home to someone vs. an investment property. It should be able to qualify for bank financing since it's title eliminated.

I'd toss a couple grand to spruce it up and list it.

Gene H. · Answer

Ken, thank for the information. It does have elimination of title, and it was manufactured in 1992. The HELOC is against the property and the doublewide. I'll take your advice and ask a broker about the cutoff date.

Do you think a land contract is a viable option to use to sell this?

Subject To strategy to sell a double wide my best strategy?

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