Bank in trouble, loan buyback?

mobile home university
1

Has anyone had any success buying your MHP mortgage back from your bank at a discount? The bank that provided financing for our park has run into some liquidity problems. They are publically traded, but too small for much TARP money, so they are looking to issue a huge amount of new stock (stock now less than $1.00) to raise cash. We recently met with the VP handling our account, and the banks stated goal is to reduce commercial exposure within Michigan, where we are.

So, we’ve found another, stronger bank that will finance our park, assuming we can get our existing bank to take a 25-30% haircut on principal balance.

Has anyone:

  1. had any success doing this

  2. if so, any hints on sucessful strategies?

Any thought are very much appreciated

2

Hi Greg just wondering if you had any luck with this? I have negotiated hundreds of discounts on existing, performing notes and we are located in Michigan as well.

3

I have heard for several sources that Bayview is discounting some of the notes they have. pretty sure they have to be holding the paper and did not sell the note and are just servicing the note.

A close friend just assumed a Bayview note on a park he bought as well, and he was informed of this as well. The rub might be a negative impact on your credit… I would rather eat $75,000 or $100,000 than have a short sale on my credit… my point… before going too far down the road of a principal write down you might look at the ‘rest of the story’.