Owner finance? Yes or No? Mobile in TX

I know someone with a mobile home for sale, but the only people interested are wanting owner financing. Is this a good idea? I’ve heard it’s not as easy to evict them if they stop paying, as it was when it was a rental home.

The house is located in Texas.

TedJr and the folks from Texas will be able to tell you more specifically about the Texas laws but when someone doesn’t pay a rental you do an eviction but when someone doesn’t pay their mortgage, you have to do a repossession…the timelines and difficulties for each will vary from area to area…


I’m new here. Is TedJr name of a user? Would I search usernames for that?

Yes…To borrow one of Richard’s terms from “Flip This House” – TedJr is the “Mac Daddy of posters” here…(my 1100+ posts pale in comparison)…he’s from Central Texas and knows the rules and more importantly, how the game is played in the state…

Not to worry, he’ll see your post!



Howdy Ladyborg:

I had better not let you down as I have been so highly recommended by Keith. If they stop paying on a mortgage you will first have to foreclose on the mortgage and then after you own the property thru foreclosure if no one else bids and buys the property, you will have to file a 30 day notice to vacate and then if they are still there file with the JP’s office. This will take about another 30 days from start to finish. If the property is a homestead the foreclosure will take an additional 30 days as you first have to give then a notice of default.

Make sure you get plenty of money as a down payment if you sell and owner finance.

Thanks. I really don’t get this stuff, but I mentioned it to a financing guy I know and he said he didn’t think there was “anything wrong with owner financing. Often times people cannot sell their houses via standard financing and seller financing is the only option. Recent changes in lending guidelines make it very difficult to do loans on manufactured homes. If your friend cannot sell the house then seller financing should be ok. If she sells the house via a “contract for deed”, I would not recommend recording the contract. It is in her best interest not to record the contract. If the buyer defaults avoids the foreclosure issue if the contract is not recorded.” He sent me a blank “contract for deed” to use if she chose to go that route.

Any comments?


There is nothing wrong with owner financing, but you MUST understand it! You will be the “bank” for XXX amount of dollars for YYY amount of time. At the right interest rate and for the right duration, this can be very lucrative! It can also be a nightmare if the buyer tries to ‘roll’ you!


Hello, Ladyborg!

Is this mobile home being sold only as a mobile home, or is it being sold with the land under it?

That is, is it located in a park somewhere on a rented lot, or is it part of a land/home package?

It includes the land.

keith or tedjr.

i have been reading these post, i am thinking about owner financing my mobile home also that is a homeland package… what do you mean if the owner tries to roll you… i am also in texas, what is a good interest rate to start and what forms do i need to get them to sign…


Yes, please explain “roll you”.

Also, is it legal, or can you get in any trouble, for doing as I was advised and NOT record the contract. That it would be in your best interest not to record the contract so that “if the buyer defaults avoids the foreclosure issue if the contract is not recorded”

Howdy Ladybug and Susan:

Getting Rolled is slang for getting ripped off which too is slang I guess for getting taken advantage of or stealing. Basically I believe Keith means just staying there and not paying the payments.

Contracts for deed are illegal. Stay away period. There may not be jail time illegal but the fines and penalties and court awards would be enough that you wish you could go to jail instead.

As far as giving the buyer a deed and not recording it, if this is your question, I am sure it would be looked at with an intent to circumvent the contract for deed laws and lease option laws. If the buyer pushed the DA etc you could have your hands full again with attorney fees and possible other losses.

Best to set it up legally and collect enough to hire someone to the the trustee and foreclose for you or your client if the need arise.

The forms are simple enough: A deed and a deed of trust and a note. It would be a little more complicated if the property has an existing loan but it can still be done.

All this seems hard and the new laws seem harsh to investors. The laws were made to protect folks who put down money and made payments for years thinking they owned the house when in fact the bank foreclosed on the seller and booted them out in the streets. I have known several families like this and it is not good to have the sheriff or constable knock on the door telling you that you must vacate in 3 days or he will come and set your stuff out be the curb.