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Warning sign: People have stopped paying their mobile home loans

Discussion in 'Money and Business' started by Fishndude, Apr 5, 2018.

  1. Jimbos

    Jimbos

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    All you have to do is watch 3 hours of Live PD on a Friday or Saturday to see exactly why these deadbeats are having a hard time making ends meet.

    Should I get another tattoo or put money aside for the house payment, what about that hairdo, cellphone, drugs, going to the bar?

    It just all goes back to the me and I want to be special and be seen society. Priorities are out of whack bigtime, but the money was there initially for the loan.
     
    kingfisher 11 likes this.
  2. Waif

    Waif Premium Member

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    Just as an inner city can collapse ,and those who inhabit it after be blamed ,so can a trailer park.

    I know of one such park. But know too of some nice comparison too.

    Many years ago an uncle built a park ,one slab at a time.
    He moved into it and kept it immaculate. Including rules that may have included not farting sideways.

    What was low cost housing has evolved. The lowest cost housing will have a varied demographic ,with well heeled upper class being a razor thin minority.
    With the recent (past decade) rise of homeless (including working folk ,and not all low wage earners) paying rent ,and even finding a place to rent became a drive.
    Many such folk only a down payment away from buying a home (where such a home may be available) with the cost of rents....
    Yet with the credit traps and poor financial planning many wander into ...a down payment might be a pipe dream.

    A new car ,the insurance on one ,or worse a leased vehicle are hard on a small budget.
    Yet is a new norm vs the beaters of the past being driven because they were paid for.
    Yes they are harder to maintain ,but part of ownership at one time was study and learning and networking to keep them running.
    A type of ownership that transferred to a home. Where maintaining it helped protect an investment. And boosted a faint sense of responsibility and self sufficiency.

    Champagne on a beer budget is fun for a while.
    But when you can not ,or will not pay it off you can end up where you might really not want to be.
    So lowest cost housing should reflect the economy. Sometimes though it is the economy of choices and decisions that land folks in dire straights. Other times true economic factors like inflation , cost of living or job market cause a default.
     
    zig likes this.

  3. jrose

    jrose

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    Not to mention they are tornado magnets!!!
     
    jiggin is livin likes this.
  4. zig

    zig

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    Interesting. I worked as a machine operator for a couple summers in a real craphole shop. Dirty, dark, hot, etc. I worked with an older lady there. She had been there for years. I remember she used to eat whole white onions at lunch, like an apple. First time I had ever seen that. She lived in a trailer park right by the shop. And, she was largely the same way. Kept it as nice as she could. But, she was also supporting her daughter that had like 4 kids from three dads. And, she was probably making $12-$13@hour. While she kept her place up as best she could, right across the way there was Delroy or whatever his name was, who had served a good many years for child molestation, and then non-working drug riddled folks scattered all over. She liked the idea of having her own place, and was proud of it. Her choice, but I always wondered how she could be happy with her surroundings.
     
    jiggin is livin likes this.
  5. zig

    zig

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    Funny.... Before the Great Recession, I had a couple relatives that lived in houses they should not have bought and drove BMW's. Things turned and they lost their homes. Both still have student loans. Both filed for bankruptcy 2009-2010ish. Their income position is no different now than it was 10 years ago, and after years of driving old crappy vehicles, they both just recently went out and got new BMW's.....
     
  6. Far Beyond Driven

    Far Beyond Driven

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    I wanted to move into a trailer in a crappy park close to work when I moved back to the west side. Dad told me I was wasting my money. Maybe, maybe not. I worked about 80 hours a week back then and was not around to enjoy my house, and with the amount I was able to scratch for a small down payment got killed on PMI and interest.

    Was hoping to live cheap and pile cash for a while to get a nest egg and become established. But then a house, wedding, used Jeep, boat, and kids happened in about five years time.

    He asked what I was going to do with a $6k POS mobile home when I wanted to get rid of it, and I told him for $6k I'd just walk away from it. No point in fixing it up when the neighbors were busy hacking each other with machetes (happened there a year after I would have moved in). I paid $10k in interest alone on my mortgage the first few years.
     
  7. Lund Explorer

    Lund Explorer

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    I'm sorry you take face the truth..... I'll refrain from making any such generalizations about you and your type of attitude.
     
  8. zig

    zig

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    Oh my god.... You're quite the bitter grumper bumper. I mean, you're like "out in the ether man." Life must be pretty darn depressing.... I didn't understand the last one, nor do I understand "you take face the truth." I had a buddy once, he was pretty oddly bitter like this... He kept a pint in his desk drawer.

    Hey TK81 - Here's another hole in my theory. :tdo12: A left leaning member that may need some work in the interpersonal intelligence department (no offense Lund Explorer, but you came out a little hot and loaded for bear from the get go here:)). I'm learning a lot today. :D
     
    Last edited: Apr 11, 2018
  9. Fishndude

    Fishndude

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    The point of the original post is that a relatively large segment of society, which people tend to live hand-to-mouth more than the average citizen, has started to show serious delinquency in their housing payments. This does not portend a strong economic forecast.

    My opinion of manufactured housing is that pretty much everyone would be better off living in a different kind of housing. Manufactured homes are money-pits, which simply depreciate in value over time. Heck, stick built homes don't really appreciate, but the land they sit on usually does. Renting an apartment, or house makes much more sense than purchasing a manufactured home.
     
  10. mal

    mal

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    Delinquency rates on subprime auto and home loans often go up as the job market improves. The logic behind it is that as the job market improves, those who either didn't qualify or were averse to applying for credit, become more confident and begin shopping for the bigger ticket items (cars, motorcycles, mobile homes, houses, etc.). Many of these new borrowers are fringe credit, facing much higher interest rates and thus higher payments. Now I'm not saying that everyone who owns a mobile home is fringe credit/subprime material, but what I am saying is that traditionally sellers of manufactured housing use financing conduits that can be very aggressive lenders (some may say predatory)...and fringe credits can be very aggressive, and unfortunately not very financially literate borrowers (some may say easy prey). So as more of the fringe borrowers are pulled into the credit pool, the risks of lending to those with 600 FICO scores begin to surface...let's face it we all know people who like to over extend and pay chronically late. As these fringe borrowers bite off more than they can chew, as has occurred during every boom and bust cycle in history, delinquencies begin to rise.

    Rather than being a sign of a slowing economy or an issue with poor wages, it is actually a sign that those on the lower end are climbing the ladder, becoming more confident, seeking credit, but unfortunately getting up to their chins in debt.
     
    Last edited: Apr 15, 2018
    Far Beyond Driven likes this.