Repossession mainly refers to a situation in which creditors take possession of your property or asset, due to defaults in payments to be made for the said property or asset. This is a common phenomenon when it comes to vehicles, where you might have purchased an automotive by availing loans, but have failed to make payments or are no longer able to make payments.
In such cases, the lender has a right to dispose of the asset in any way he or she deems fit to recover the cost of the loan provided. However, it is not uncommon for homes to be repossessed in case you cannot make payments.
Mobile homes are a cheaper and flexible option when it comes to purchasing residential property. However, many cannot afford to put up the capital required to secure these properties which is why it is very beneficial to avail mobile homes repos deals. Not only will you get a good price for the pre-owned property, but also you will be able to avail additional finance options if needed to secure cheap mobile homes repo deals.
However, some things should be kept in mind while you are inspecting the repossessed property before doing any paperwork:
Inspection: Mobiles homes which have been repossessed might have a few issues with them. The main reason being, the previous owner did not have the necessary funds to make monthly payments, so it should not come to as a surprise if regular upkeep and maintenance have not been carried out. Inspection needs to be conducted by professionals concerning the structural, electrical design, plumbing, the foundation among other elements that form part of these mobile homes. Even repossessed homes will have to pass several buildings and land codes before they can be deemed fit to be occupied. There are, however, mobile homes which have been maintained in an excellent condition which will get you a good deal for the best price.
Financing options: When it comes to used or pre-owned property, it might get difficult to get good finance options. When it comes to a mobile homes repos deal, even people with excellent credit might find it a bit difficult to avail financing for the said property. The same should be checked with the banks who have ownership of the repossessed mobile home. You can also check with the loan officer for available options and only then proceed with the necessary inspections.
Banks and financial institutions will have a list of mobile homes repos and recently foreclosed homes which will be up for auction or short sale. Visit their website to find out more about property deals which can be a good bargain, since these homes can be bought for as cheap as 50% off the market value.
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.