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Owner Carry Mortgage--Do I Claim It?

BayHouse Credit Forum: Finance (Real Estate): Owner Carry Mortgage--Do I Claim It?

AnnMarie (Emmiline)

Monday, April 30, 2001 - 07:19 pm

Hello all!
I have a note on a trailer (mobile home) that is not permanently fixed on a small piece of land (lot) It is deeded land. I have been paying a private person for almost ten years via a title agency. This property does not appear on any credit report (major 3 all checked)We pay the property taxes on it. I am often late on this payment due to this non reporting fact--I am lax and use the payment money often as floater money--wrong and I have stopped.
I want to buy another home in another state (currently in Az want to move to NM). I would like to go FHA if possible. I have the downpayment,etc but I'm scared to death to go get financing since I do not know how to handle this home I have. We plan to keep it as the payment is extremely low (250~) and we owe less than 10k (perhaps 50% of the value)I would prefer that it not be included in our ratios and new financing due to the multiple late pays in the last year(s).
Am I required to report this trailer as an owned home when I go to get financing? Is it considered an actual home since it is mobile? Can I put it as a rented property since it does not appear on any credit report? Do I claim it anyway? Will it ruin my chances of getting a mortgage on another home? Especially if I try for a first time owner?
I am really confused and scared--and this is holding us back in a very serious way.
Can anyone help? Please? I am getting desperate and it's really stressing me out.
Thank You.

Christine Baker (Admin)

Wednesday, May 02, 2001 - 04:57 pm

Legally you have to list the trailer on the loan application. If you didn't use the mortgage payments on the Sch A as a writeoff AND you did NOT live in it, you could "forget" to list it.

Also, as far as I know trailers ARE real estate, especially since you also own the land.

While it's perfectly ok for corporations to lie routinely, as it is part of doing business, penalties for misrepresentations by consumers on mortgage loan applications are stiff.

That you've been paying late is definitely a problem.

Even if you stated on the application that it is rented, your problem doesn't go away. You need the cancelled RENT checks for the last 12 months to get the loan or give the landlord's address for verification of timely rent payment.

I'd have a talk with the seller and if necessary bribe him into verifying that the payments were made on time.

I also want to caution you against keeping the property as a rental. As an absentee landlord you can expect NUMEROUS expensive problems.

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