posted
We can't get a mortgage on the property. This isn't due to our credit, but because of some weirdo thing about the property itself (the acreage) making up more than 35 percent of the total value. In other words, if the house wasn't a modular things would be cool. We're very disappointed, obviously. Actually, probably the sellers are going to be even more disappointed. Since no one will be able to get a mortgage on it, I wonder how in the world they're going to sell it.
posted
I am not a real estate agent (IANARA) and IANAMB (mortgage broker), but:
Have you tried to get a different type of loan. You may need to get a land purchase mortgage/loan (which is different that a normal mortgage). I suggest calling around to a couple banks/mortgage brokers to see what they can offer you.
posted
My husband has talked to the real estate agent, and she said she will make some more calls for us. However, since we've already talked to several loan officers, I don't think she's going to have any more luck than we did. I don't understand it all, but I guess no matter how much the price drops a mortgage will still be a problem because it's a modular home, not a "real" one. Grrr!!!!
posted
That's so annoying. I think that modular homes are a great idea, and it bugs me that they are discriminated against.
Posts: 16551 | Registered: Feb 2003
| IP: Logged |
I hope your agent can get something figured out for you. I do agree that mortgages can be really silly things.
Posts: 5879 | Registered: Apr 2001
| IP: Logged |
posted
I'll talk to my real estate attorney boss and see if he has any ideas or suggestions. It's unlikely he's dealt with this first-hand, however, given that we're in Chicago and there isn't a whole heck of a lot of open land or farmland anymore.
Posts: 4515 | Registered: Jul 2004
| IP: Logged |
posted
It's more than 35%- just barely or by a lot? Contracts are often contingent on some change being made to the property.
Posts: 11017 | Registered: Apr 2003
| IP: Logged |
posted
It won't comfort you much, but I can help explain the rationale a little.
Mortgages for a primary residence are considered relatively safe investments - homeowners usually go to great lengths to protect their homes.
Undeveloped land is an inherently risky investment, and residential mortgages are not allowed for it. When the percentage of value derived from the land is so great, the risk profile changes from that of a standard residential loan.
There's some loan somewhere that will work for you, but it may be too expensive. There may also be different ways to structure the deal so it's possible.
posted
That's pretty weird (as in I never thought of it cuz)... ..in old beach and resort communities, the land itself can often be worth many multiples of the price of the constructions on it.
posted
Seems odd, but have you thought about trying financing through the Farmer's Home Administration? They might have a program that's just right for that particular piece of property.
Farmer's Home has morphed in recent decades to providing low cost housing options, but there may be something available that harkens back to its original credo...
You might also put in a call to your local Ag Extension agency... but come up with what you want to do with the farmland first...
Lastly, you might want to look at owner financing of the property. If this is going to be a long-standing issue for the sellers, they may jump at the chance to unload this now at the price they want, rather than waiting for someone down the road to kick 'em when they have to lower the price.
[ September 30, 2004, 07:14 PM: Message edited by: Lost Ashes ]
Posts: 472 | Registered: Aug 2004
| IP: Logged |
I do hope you can find some way of making it work. Then I can come visit you and start on the trout stream.
Posts: 4393 | Registered: Aug 2003
| IP: Logged |
quote:That's pretty weird (as in I never thought of it cuz)... ..in old beach and resort communities, the land itself can often be worth many multiples of the price of the constructions on it.
Those do represent an exception, since they represent a much less risky venture, assuming adequate flood and hurricane insurance. Beach front property has inherent value in foreclosure.
posted
We've gotten some more information. Apparantly we can get a loan, but it would be at an increased interest rate and also would probably require more money being put down. The mortgage broker Mr. Opera spoke with late this afternoon explained that the turn-over rate for mortgages on modular homes is 1 in 7, versus 2 percent on "real" homes.
We're now thinking that unless we're willing to immediately start building a new home on the property that buying it would not be a good idea. It seems like it would be better to go with perhaps a bit less land, but a nicer house for a bit more money. Otherwise if we had to sell the property in the next few years we'd have a terrible time getting rid of it, and we definately cannot carry a mortgage on the current house/property plus assume the cost of building a new house right now.
Bleck - why do things have to be so darned complicated?
Printer-friendly view of this topic
![[Frown]](frown.gif)
