Anyone ever purchased through "owner financing"?

[brittthomas]

My wife and I are just starting to look for our first MH to purchase Jan. 2015 when we get the house paid off. We've been searching the local rags and craigslist so far and have seen several affordable and decent options.

We've also seen a couple that list "owner financing available for responsible people." Is this a viable option? I'm all for interest free payments. On the down side though, you may have no room for price negotiation.

Any other positives or negatives in buying via "owner financing"? Anyone on here get there rigs by doing this?

 

[Charlie 5320]

"interest free payments"  Did they advertise interest free payments, or are you assuming there will interest free payments?  Just because they are advertising owner financing, don't mean interest free. Many times the interest will be higher than banks.

 

[brittthomas]

"interest free payments"  Did they advertise interest free payments, or are you assuming there will interest free payments?  Just because they are advertising owner financing, don't mean interest free. Many times the interest will be higher than banks.

It was just an assumption. Good point.

 

[JudyJB]

This sounds like a similar situation to seller-financed housing where you do not get title until you pay off the contract with the seller.  Based on my experiences with my parents house which was sold under land contract and was a huge disaster:

• Make sure you have a good lawyer review the contract to make sure you are protected if the seller dies, declares bankruptcy and has someone attach the RV, or changes his or her mind about turning over the title.
• Make sure the seller actually has a clear title to the vehicle.  Even though you get possession of the vehicle, it won't do you any good to spend a lot of money on something that the seller does not legally own.

Personally, I would feel much more comfortable taking out a loan with a bank and getting immediate title, even if it cost me more.  Also, even though 50 people post and say they have done this and had a good experience, your seller and experience may differ.

 

[Frizlefrak]

Personally, I would feel much more comfortable taking out a loan with a bank and getting immediate title, even if it cost me more.

X2

This sounds like a disaster in the making.  If the owner dies, you may be fighting his heirs for decades...or may wind up with a vehicle that doesn't have a title. 

 

[Wizard46]

X2 for me also. One thing to consider, either way you won't have the title, it would be with the previous owner or if you borrow then it will be held by a reputable financial institution.

 

[MN Blue Skies]

As a retired banking officer I see a lot of red flags.

 

[Gary RV_Wizard]

The cautions are all wise, but I see no reason not to investigate owner financing as a possible alternative.  Just recognize the sorts of things that others have mentioned above and make sure your interests are protected by a sales/finance contract. But if you don't want to deal with that sort of thing, get your financing elsewhere (if possible).