Greentree Repo

I have a Greentree repo in my park.

Has anyone received any lot rent payments or back rent on anything from Greentree?

Any tips on negotiating a purchase from them?

Does Greentree ever try to resell/refinance in the park or do they just wholesale them out?

Thanks!

Patrick,

It may depend on your location and competition but I have made some good deals with Greentree. I have never collected lot rent from them - I think they just would rather make a deal and get the home off their list.
Bret

HI,

I am working with them now on one for a homeowner who is tired of the hassle and they are in a different state to me (MI). Greentree couldn't be more helpful to me. Of course i have to Find an investor to purchase it if we are successful. They indicated they are willing to work with park owners as they do not want to pay lot rent.

Just call them up and try to get with the person assigned to the case, you may need permission of the homeowner to speak wth them about it though, if they are gone, see if you can get the loan number at least.

We have had several Greentree repos in our park over the last few years and most ended up sold to dealers and moved from the park as we had no interest in taking ownership of homes at the time. We could never collect from them directly it was always up to the purchaser to pay all back lot rent.

On the most recent we called Greentree and got in touch with the rep handling the home and asked to be given first shot at buying. This was my first time buying a repo from them and I found them quite easy to deal with. They actually put me in touch with the field guy who came out to secure the home so I could walk through it with him. I called the number he gave me and made a verbal offer that was accepted immediately. I felt like it was a great deal to keep the lot filled. I think the key was staying on top of them, I made a lot of calls but it was worth it and now I am on their monthly repo list.

Back about 7 years ago we used to force Greentree to pay the back lot rent because we didn't care if the home moved out as a new one would move in when the lot was vacant. Once they received notice that the lot rent was due they were forced to pay via state law. However, those days have changed and as the park owner you are in a better position to buy the home as long as you open your lines of communication with them. Plus you don't have to move the home but you end up eating the back rent.

To my knowledge Greentree does not resell to individuals and rewrite notes - it is cash and as-is to dealers and park owners.

Dave

MobileHomeParkStore.com
MHBay.com

We have never let a repo home leave our community. We have never collected back lot rent from any finance company either. Instead we notified the finance company if we think there is a upcoming problem with payment, because usually the tenant gets behind on lot rent also. This post makes me think of a very important but many times over looked part of the MHC purchase equation. How many homes in the community you are considering buying are financed by outside sources? and do you have the capital available/planned to buy these homes from the lender if necessary. I have looked at many communities that were once almost full that are now 50% or less occupied because the owners did not have the capital to retain and resell repo homes.
Rick Ewens



Edited 2 time(s). Last edit at 07/27/2010 08:48AM by RickEwens.

Good point Rick - much of the work involved with turning around a park has been handling various issues with homes in the park (abandoned, people living in homes not on title, taxes sent to the wrong person, lost titles). As you start to acquire some of these homes from residents (it always happens) these title problems become your problems. On your due diligence list when buying a park you should ask for copies of titles for all homes in the park, and tax statements if you can get them.

Regarding Greentree, there is an online bidding process that makes it easy to deal with them (sometimes they are very busy if you try to call). You just need to sign up with a bidders account and they will email you the monthly repo lists and bidding instructions.
Bret

Thanks for all the great input!

My goal also is to keep all homes(repos and individual sales) in the community. I believe the park owner has a big cost advantage over other buyers since since the park owner does not have the move and set-up costs. I estimated it costs me a 4-6K for a single and 8-12k for a double to move and set-up.

What do think is a fair price to pay Greentree? Would it be a percentage of the outstanding loan? A percentage of the NADA book value?

The cost of the home will be at the high end of home prices in the the community so I don't want to pay a price the makes it unaffordable in my market.

Thanks

You said the key word and that is market. You must know what your affordable housing market is then back into a reasonable price you can pay for the home, taking into account repairs, AC and all that stuff. You are right it is cheaper to keep a home in your park than it is to replace one.