Information on mobile homes refinance - The Bills.com Blog
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Information on mobile homes refinance
Question: My husband and i took over payments on our mobile home and have been making the payments for eight years now. Do I need to refinance so that the mobile home will be in our names? If so what do I need to do?
Answer: You do not need to refinance the loan on your mobile home. Rather, you and the previous owner need to work with the lendertransfer the title of the home into your name. It is likely that the company that financed the home holds a lien holder?s title to the home, similar to the title held by an auto lender on a vehicle you finance. Since you have been making payments on the loan for eight years, the lender may be willing to change the name of the purchaser on the title from the previous owner to your name. You and the previous owner will need to contact the lender to discuss how to change the names on the title. Each state has different laws regarding how financed property is titled, and the lender should be able to assist you in completing the transfer of the title.
Many consumers believe
that the name appearing on the mortgage determines who owns the home, which is incorrect. It is the name that appears on the title, not the name that appears on the mortgage, that determines who legally owns a property. Once you contact the lender to discuss the transfer of the title, the lender will likely also want to change the name appearing on the loan, since you are now living in the home and making the mortgage payments. However, even if the lender does not change the name on the mortgage, if they agree to place your name on the title, you will become the legal owner of the property.
A refinance will not change the name that appears on the property title, so a refinance
will probably not solve your problem. In fact, until you have your name put on the title, you will likely not be able to refinance the property, since you are currently not the legal owner of the property. Once you have transferred the loan and title, you may want to refinance the current loan, but only if the new loan will offer you a lower interest rate or improve your financial situation in some other way, such as lowering your monthly payments.
I wish you the best of luck in transferring ownership of your property, and hope that the information I have provided will help you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Milo Wideman on Monday 12th November 2007 07:01
I want to know how long I have to wait before I can refininace a mobile home on my own land
2. Posted by Nate on Monday 12th November 2007 11:37
Generally speaking, you can refinance the loan at any time, but I would suggest that you find out the specifics from your current lender. The main thing you should look for is prepayment penalty clauses on your current loan. If you end up paying a stiff prepayment penalty then it might not make sense to refinance.