I need to do an owner finance, asap, have not done one before, what do I need to make sure i don't overlook?? I am in NC and my double wide is in TN, my brother is currently renting from me, 3 yrs, but he is interested in owner finance because of his credit right now. I was wanting to see if there is someone that can give me some quick tips on what to make sure I have covered on my side of this. Thanks for your time and advice!!!
Have a lawyer write it up for you, Especailly since it is family.
You can also call your local Tax Collector office to see what the rules are for selling a mobile in your area are. They could point you in the right direction as well.
Is the double wide in a park? If so, and you're planning to sell it with owner financing, make sure your brother can qualify as a renter in the park. Call the park and find out what their requirements are. If he doesn't qualify, there may be other ways to arrange the financing.
If you are selling to your brother the transaction will be exempt from Dodd-Frank as to originations. Absolutely see an attorney if you are in a hurry, it takes time to learn as the issues, benefits and aspects of closely held transaction, such don't pop out like bubble gum out of a gum ball machine.
I also suggest you have a conversation alone with the attorney and address any family issues. Get a loan servicer involved and assign the note for servicing, that way you won't be the bad guy later on, collecting from family is not a good position to be in. :)
Thanks so much!!!
@Account Closed I will be talking to an atty soon, just want to make sure all my bases are covered.
Kristine Marie Poe no it is not in a park, it is on 1 acre of land that will be included in the deal.
@Manny Cirino good point had not thought of that, thx!!
@Bill Gulley thanks!!! yes I really want to keep this as clean as possible and the loan servicer sounds great!!!
I knew had had seen something about the SAFE act (i think) and was not real clear on what this was, if it was something that would need to be addressed as well?
@Tammy Starks don't know about TN but in many states mobiles are titled different and are in fact separate from the land. Your attorney would know that but just a heads up that you will need to sell both.
Regardless of selling to a family member, If you are selling as a person or trust (or as an estate), you can sell one property per year and be exempt from the Dodd Frank and Safe Act concerns that most of us investors are concerned about.
Definitely find an attorney to help you execute the promissory note and mortgage. Using a servicer can make it a lot easier on the paperwork end as well as create distance between you and the borrower. Lenders have to provide end of year statements and follow certain guidelines for applying payments, etc. Servicers do all that paperwork and bookkeeping for what is, IMO, a minimal fee.
Thanks again for the advice!!!
I am waiting to hear back from an atty so I will be sure to find out about the land needing to be a separate deal.
Glad to know about the exemptions!! And I definitely will be looking into a servicer, especially since I am out of state as well.
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