If you sold a mobile home or manufactured home and carried the financing, you may be able to sell that note for cash. Whether you can, and for how much, comes down to one big question: does the sale include the land?
Short version: A mobile home sold with the land, and tied down as real estate, sells much like a house note. A home sold by itself, sitting on a rented lot, is harder to sell and brings less.
Two kinds of mobile home notes
1. Home and land together. The buyer is paying for the home and the lot it sits on. If the home is permanently attached and treated as real estate, you likely have a regular mortgage or land contract. These are the notes I like best.
2. Home only. The buyer is paying for the home, but the land is rented, often in a park. The home is personal property, more like a car. The loan is secured by the home's title, not by real estate.
Why the title matters
In most states, a mobile home starts out with a title, like a car. What happens next depends on the state and the paperwork.
- Treated as real estate. The home is on a permanent foundation on land the buyer owns. The title has been retired or surrendered with the state, so the home is now part of the real estate. Your mortgage or land contract covers both.
- Still personal property. The title is still active. Your lien should be listed on that title. If it isn't, that's a problem a buyer will flag.
Not sure which you have? Look at the title, your closing papers, and the county tax bill. If the home is taxed with the land as real estate, that's a good sign.
What drives the price
The land. Land holds value. A home by itself usually loses value over time. That's the biggest factor.
The home's age and condition. Newer homes on solid foundations hold up best. Older single-wides bring less.
The payer. On-time history matters even more here. A payer who has paid for years is a strong sign.
The equity. How much the payer put down and has paid off. A thin down payment on a home-only deal is the hardest to sell.
Park rules, on a home-only deal. If the lot is rented, I'll ask about lot rent and whether the park would let the home stay if something went wrong.
What a buyer will check
- The recorded mortgage or land contract, if the land is included
- The title, showing you as the lienholder, if the home is personal property
- Proof the home is affixed and treated as real estate, if that applies
- Payment history, with dates and amounts
- Insurance on the home, with you listed
- Taxes, on the land and on the home if billed separately
- Photos or a drive-by of the home's condition
See the full list of documents you need to sell a mortgage note.
Rules to know
Mobile home financing has extra rules in many states. Some states require a license to finance a mobile home, even for a private seller. A buyer will check that the deal was set up the right way for your state.
I'm not a lawyer. If you're unsure how your note was set up, talk with a local real estate attorney.
Ways to get a better price
- Sell the whole note if the land is included. These sell like house notes.
- Consider a partial sale on a home-only note. Selling a shorter stretch of payments lowers the buyer's risk. You get cash now and the rest comes back to you. See how a partial sale works.
- Keep clean records. Bank deposits beat a handwritten log.
- Make sure your lien is on the title if the home is personal property.
How the sale works
- Get a quote. Send the balance, rate, payment, and whether the land is included. Start here.
- Send copies of your papers. The title or the recorded mortgage, and payment records.
- Due diligence. I check the title, the property, and confirm the balance with your payer.
- Close. You assign the note and lien. You get paid.
- Your payer gets a letter. Their terms don't change. Read what happens to the payer when you sell.
Frequently asked questions
Can I sell a note on a mobile home?
Often, yes. Notes where the land is included sell best. Home-only notes on rented lots are harder, but some can still sell, often as a partial.
Does it matter if the mobile home is on rented land?
Yes, a lot. Without land, the only security is the home, and homes usually lose value. That lowers the price.
What if my name isn't on the mobile home title as lienholder?
Fix that before you sell if you can. Your state's title office can tell you how. A buyer needs proof of your lien.
Is a manufactured home note the same as a mobile home note?
Mostly, yes. People use both names. Manufactured homes are the newer ones built to a federal code since 1976.
Can I sell a land contract on a mobile home and land?
Yes. If the home is treated as real estate, it works much like any land contract.
Want a rough number first? Try the note value calculator.
Larry has invested in real estate since 2006 and has bought more than 300 mortgage notes. He runs LJH Investments, LLC, an Ohio company based in Madison, Indiana. More about Larry
This article is general information, not legal or tax advice. Laws change. Talk with your own attorney and tax adviser about your situation.