Manufactured Home With Little Equity
Hi all
I was wondering if you guys could help me out with my possible first deal:
- Manufactured Home (built in '02) on a one acre lot
- Currently owe 110K (house + land)
- Went into defaulted in December
- No Comps available
I know Manufacture Homes don't hold their value as much as regular homes. Is there anything I can do with this? Can I do a short sale, or an option?
Thanks for any advice ...
This is not a "mobile home" deal, per se - it involves real property, so all the rules of a RE investment apply.
No comps? WHAT?!?!?? Too weird. So there's NO land/home packages around that have sold?
MH holding value is an oxymoron, but as a REI, let's just say that it *may* appreciate less.
Is it installed per manuf specs, meaning - usually - on a foundation? That will be key to getting easier financing. Is it DW or SW? Again, key.
And if you need translation for DW and SW, perhaps steer to another type of building . . .
Now Now don't take the prior comment to heart. Buzz words are an www.abomination.There is something about joining a group of limited purpose they always have these little coded words.
When I was a child of 16 I newly arrived in England joined a British Fighter Squadron who were really into them. "Break right" Tallyhow! Wizard Show. True Gen, Pukkah type."
Newly arrived from the slums of Beverly Hills I was totaly at a loss. But due to a high casualty rate and the forsight to install three backward looking mirrors in my kite,er Spitfire, I waxed the hell out of it to get a little more speed, I survived, and then as the newly promoted Squadron Leader I introduced my own series of Buzz words.
A twin engined German bomber became "A knocker Queen" A lady of easy virtue became a "Pom Pom Date." And the higher ranks of the RAF became the "12 Apostles."
In the present instant go out to the place of records, look up all the land owners in your surround. If you have to go visit them and ask for values. While you are examining records check the sales price on any recent sales. Land check back up to 36 months and evaluate based on the economy up or down. Come on it is not rocket science. Approximate and do not be afraid to fudge based on your feelings. You are there, it is your viewing. Go for it.
Scramble the WAAF Section and have them patrol the Pilots quarters.
Lucius 8-) 8-)
I don't know a lot about REIing, however I do know mobile homes (in my area at least). If there are no comps available in a 5-10 mile radius you will not get new financing. In some rural areas there just aren't any comps, in the new home side of the business you would have to move that customer to a modular home, so stick built homes can be used as comps.
If you find some comps, and are considering an out right purchase you need to be sure that the foundation meets FHA code or you will have to find a buyer that can qualify for a conventional loan (tough for MH buyers these days). If it does not meet FHA qualifications you will need to figure in the cost to do a retro fit
( in my area about 3k). Chances are the lender will short sale for 60-65k if you have the cash. Your best bet may be to help the current lender find a buyer that they like, they will usually take a less qualified buyer and will probably pay you around 10% ($11,000)commission to handle the paperwork. Since they did the loan the first time closing cost will be minimal, they already have an acceptable appraisal, and clear title.