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| *Ostroff, Fair and Company>>>Other - Business & Finance |
Selling Mobile Home for 70% of value?? - What to do? |
My boyfriend bought this place ('95 mobile home) a couple of years ago. If I was around, I would have stopped him. He obviously didn't know how much they depreciate, and didn't figure he'd ever be moving. We're trying to move out of state by September. He owes $9000 on a mortgage. We were asking $9500 for this place (but knew we'd probably get lower for it). A guy who wants to buy had the bank appraise it; it appraised for $9600 (dropped from $12,200 in 2 years!). The bank will only give him 70 % of what it's worth ($6800). Would it be completely dumb to take the $6800 (maybe ask for extra $200), and get a loan for the remainder ($2000)? I already have $2000 racked up on a credit card, and we really didn't want to have to get another loan. Are there any other options? Would it be dumb to get a $4000 loan so I can pay my credit card bill off as well with a lower interest? What you are REALLY asking is whether you should give away $2000 -- and pay interest to do so. The answer would be "no". He can't afford what you're selling. It isn't your job to give it away. Wait for another buyer. As for refinancing your other debt, doing so can make a lot of sense, but only if you also set yourself up with a weekly spending plan as well. If you don't have a spending plan you're just going to end up running up the card again. Fortunately, $2000 isn't much debt, so you should (with a good spending plan!) be able to handle it fairly quickly. I wrote a guide to setting up such a plan here: http://money.kevingunn.org/index.php?/ar... I don't know what state that you live in for a mobile home to be that cheap and for it to depreciate that fast. You should get the $9600 for the home. If the buyer want it, then he should be able to come up with $2800. I would not take out anymore loans if i were you because you are already in a hole, so why dig a deeper hole for yourself. triple o.g. |
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