I expect mobile homes to be the next big hit if lenders do not do something about it. I live and work in a rural area, we have many mobile homes in my county and several of them are on the market. I am having a terrible time finding a lender to to a loan on them. There are millions of mobile homes across the country with a loan on them. Most lenders have stopped making loans on them.
It seems crazy to me that the mortgage companies that are now holding the loans have stooped making new loans. If they would look at the big picture which is every one of them homes will have to sell! Life goes on, people in those homes are going to have job transfers, lose jobs, get married, get divorced, have a family member get sick that they will need to care for "pay for" and none of us live for ever in this world.
When a life changing event happens the home will need to be sold. If no one is there to make the loan what will happen?
I will tell you what is happeningin my area now. There are outstanding loans of $90,000 to $100,000 the home has to sell. We can not find a lender so they go into foreclosure. The lender who is on the hook for $100,000 takes it back. They put it on the market and end up selling it for $40,000 to $60,000 most often to cash buyers. I expect the prices to drop even more.
I am no genus but if I were in the lending business and someone owes me $100,000 and I have a choice of taking $40,000 for the property or lending $100,000 to someone with good credit and letting them make payments on the property I think I will take payments on $100,000. However I am no genus.
I would like to make a suggestion that if a mortgage company is holding a loan on a property for X amount of dollars and If someone who has good credit and income is willing to pay that for it they should be required to make the loan to the new buyer rather than take tax money to pay for there foreclosure loss. That is just me thinking.
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