Buying Partial Note from a Mobile Home Sale

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  • I ran into a motivated seller of a mobile home who is attempting to sell her home for a higher price than I’m willing to pay. However, I offered to potentially help her finance her sale.

    My solution was to suggest that she offer seller financing, take back a note, and then I’d simultaneously buy a partial of half the payments for half the principal amount. That’s something I learned from a Henry Dvorken class. That partial earns roughly twice the interest rate on the original note–in this case, 19-24% depending upon where we end up there.

    My question is surrounding the title and the security of the note. The note would be secured by the mobile home, however, as I understand it, the title transfers to the buyer. When I buy the partial, the note and security is transitioned to me conceptually, but how does that play out? Do I get the original copy of the note? Thereafter, I would assign the note back and/or release my lien if I didn’t buy the back end of the note.

    Does anyone have any experience with this? I know this is conceptually a good deal for her, the buyer, and my Roth IRA, I’m just not completely sure of the mechanics of it. I’m in Texas, so if anyone knows how this would play out, I’d appreciate your thoughts or any guidance on who I could talk to to figure it out.

    You might drop a note to Tom Henderson in the Dallas area via — you might even like to pull up his website at to see some of what he does. He also teaches, much like Henry Dvorken used to do. Tom also has a free emailed newsletter which you might ask him about subscribing to. Feel free to tell him that I put you up to such mischief.



    Thanks, Dee. I have a local friend who does this, just trying not to ask him too many questions all at once. 🙂

    I think I had a good conceptual understanding of this, but don’t know how the paperwork and security details work in an exact way.

    This seller is not getting much support from her realtor and is needing help with the paperwork in the transaction, so trying to provide general guidance there and, of course, assure that my partial note is properly secured.

    William I did this countless times in Illinois I usually mobile home sales contract and a promissory note security agreement on the mobile home title my entity was named as a lienholder course to get power of attorney form signed so if anything goes upside down you got the right to sign the needed paper I think I would just do a 50/50 1/2 undivided share to you or your entity and the seller you do the collection pass on her half to her only when you get paid

    Thanks for the reply, Don Wede!

    It’s a Chattel mortgage that I need to get set up. As best I can tell, the seller becomes the lender and retains title until I buy the partial. Then I hold title for the duration of the partial.

    I think the paperwork is as simple as a Statement of Ownership and Location and a Chattel Mortgage notarized. Cashier’s check. Proof of insurance. And some of Lonnie Scruggs’ advice on what to put in the Chattel Mortgage language.

    Allot of ways to accomplish the same end.

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