Can Mobile Home Owners Refinance “Upside Down” Loans?
With the economic down-turn and the current home value decline, many mobile home owners are finding themselves stuck when it comes to refinance options. What options exist when there is no equity left in a mobile or manufactured home?
Lender’s use the term “upside down” when the value of a mobile home is less than what is currently owed on the mobile home mortgage.
Sadly, in this case, most homeowners will have trouble refinancing their loans with a conventional mobile home lender. A lender wants to ensure that if a homeowner defaults on their mortgage, the value of the home (if forced to foreclose) will exceed, or at least, meet the amount that is owed on the loan.
If a homeowner owes the bank more than the home is worth, waiting out this economic downturn is the only option. A homeowner will need to wait until home values go back up, while their principal balance on the mortgage goes down. Until the value of the home exceeds the amount owed, refinancing a mobile home loan or pulling cash out from the equity on the mobile home is not a viable option.
Fore more direct, honest answers like this, check out the California Mobile Home Finance website at http://www.camhf.com
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