Last week I had my first applicant that had recently lost their house to foreclosure. Here were their circumstances. $28k income - he works 40hrs per week , she is a stay home mom. on 7-2007 they bought an house 30 miles from work with no $$ down and $700 month payment. They made 7 payments and now they are walking away. I don’t know how typical this story is, but this is clearly no tear-jerker.
I had a conversation with a man who has been in the MH biz(sales,parks, lending) for 60 years and I asked him about some note servicing tips - without hesitation he replied “Get a Big Downpayment” and paused he went on to say “there is no better indicator of how well a borrower will repay.”
Would anyone disagree? Does anyone have techniques that are effective in getting No/Low Downpayment accounts to perform?
Post Edited (07-30-08 06:59)