Are you in the market for a mobile home? Are you considering a repossessed mobile home?
Repossessed mobile homes are homes that were taken by the bank after the owner could not keep up with payments on the home.
In this article, we’re going to look at what buyers should know about repossessed mobile homes. And we’ll also consider how to evaluate a repossessed mobile home.
Finding the right mobile home doesn’t have to leave you searching blindly in the dark for a deal. So let us help you figure out whether a repossessed mobile home is what you’re looking for.
What buyers should know
Below we’ve listed five things buyers should know about repossessed mobile homes. Now let’s get started.
1 – They can be in great condition
Yes, that’s right. A repossessed mobile home can be in great condition. In fact, mobile homes are not repossessed by the bank because of their age or quality. They’re repossessed because the homeowner could not keep up with payments to the bank.
That being said, a mobile home could be “like new” yet placed on the repo lot simply because payments were not met. And this could be good news for the buyer, especially with our next point in mind.
2 – A repossessed mobile home can cost less than a new mobile home
Now let’s look at our second point. A repossessed mobile home can cost less than a new mobile home. And yes — as we said above, these homes can be like new! A good deal on a home that’s like new is certainly not something you can afford to ignore. Who’s ready to win a good deal?
Note that often these homes are sold “as is” by the bank. The bank will sell the home in the condition it was found.
3 – They’re great investments
Thanks to the elements outlined above, repossessed mobile homes can be a stellar investment. Generally speaking, mobile homes are already considered affordable and quality housing. But take that affordability up a notch by buying a repossessed mobile home and your savings are something to celebrate!
4 – Repossessed mobile homes are appealing
Overall, there are three categories of buyers that will find a repossessed mobile home appealing. Mobile home investors, mobile home parks, and first-time mobile home owners are going to be drawn to a repossessed mobile home. In short, these are the folks looking for an exceptional deal.
5 – A newer home means better everything
By everything, we mean newer appliances, better insulation, and more energy efficiency compared to older models. These can be some of the benefits of securing a repossessed mobile home. Actually, you’ll often find these repossessed homes are newer and went from the original owner to the bank. Typically, that original owner will have taken care to maintain their home well.
Evaluating a repossessed mobile home
Now let’s talk about evaluating a repossessed mobile home. Knowing what to look for as you evaluate a repossessed mobile home will help you make a smart commitment. As a buyer, you’re in it to win — whether you intend to live in the home or use it as an investment property. So the future mobile home dweller wants their dream home and the future mobile home investor is looking to reap financial rewards.
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Do you have space for the mobile home?
As someone looking to buy a repossessed mobile home, you must first ask yourself this — do you have the necessary space for it? Certainly, a mobile home is a fantastic housing option because it’s already built and you can move it to a mobile home park lot or to your own land. But have you secured either one of those options?
And in securing such space, have you taken other necessary steps to ensure everything will be ready for your mobile home? For example, if you have land for it, is the land cleared? Do you have a flat, level area? Or a foundation space? And is everything in place for utilities? Additionally, do you have someone to level your mobile home?
You also want to be sure you discover whether your locality or your park requires anything particular of you. For example, some homeowner associations will have policies regarding mobile homes. And mobile home parks may require you to keep them posted on the details pertaining to moving a mobile home onto one of their lots. Find out what information you need from the park manager and determine if you need to provide anything to them in terms of paperwork.
It may not be inspected
Is the mobile home inspected? If not, are you prepared to have it inspected?
It will cost money to have an inspection done. However, springing for the inspection yourself can save you the pain of going into a bad purchase. Thankfully, an inspector will know what the real deal is behind a mobile home’s beautiful exterior. They’ll check the sewer mains, gas mains, structural integrity, and more.
And they’ll know if the mobile home meets proper structural standards. In short, an inspector will help save you from being scammed.
Naturally, not all that glitters is gold. So we hope you work with a trusted auction dealer or company. But even then, an inspector will be another gatekeeper in ensuring a good purchase.
It may have transferrable fees
When purchasing a repossessed mobile home, there may be fees associated with the previous owner that could be transferred to you. So make sure that’s not the case. If that appears to be the case, find out what these fees would amount to before you move forward.
The repossessed buying process
Now we’re going to look at the process of buying a repossessed mobile home.
Work with a trusted dealer or auctioneer
First of all, you want to ensure you’re working with a trusted dealer or auctioneer. You don’t want a snake oil salesman selling you a repossessed mobile home. So seek out reputable companies and look for testimonials and reviews from other buyers.
You don’t want to be ripped off. And even after you’ve found what you believe is a reputable place to work with, don’t neglect an inspection.
Dig into the mobile home’s history
As you move toward buying a repossessed mobile home, understand that the previous owner’s history with the home could haunt you if you’re not careful. Were they delinquent in lot rent and does the debt come with the house? What other payments are associated with the home that would fall to you?
Understand the risks
At the end of the day, there are risks involved. Investing in repossessed mobile homes is not without risk. But neither is investing in any other used mobile home. Be wise and move forward with the right knowledge at hand to win yourself a deal.
Why you might not want a repossessed home
There are a few reasons why you may not want to buy a repossessed mobile home.
You want a turn-key home
If you’re not in the business of flipping mobile homes and simply want a turn-key mobile home to live in, a repossessed mobile home may not be for you. For some folks, the pains of fixing up a home are not what they had in mind.
Remember, we said you could find repossessed mobile homes that are like new. But that’s not always the case. There may be many good deals that will need a fresh coat of paint and some other fixes. And that brings us to another point.
You want a home now
It may take some time to hunt down the perfect repossessed mobile home. If you’re in a hurry to find a mobile home to turn into your dream home, perhaps hunting for a repossessed home is not right for you.
There are other ways to snag a deal
To be sure, there are other ways to snag a deal of a home. If you find that your options are limited in the repossessed mobile home pool, there are other ponds to fish for that good deal. Don’t lock yourself into a box. Keep an open mind. Really, this article is meant to help open your eyes to yet another way to find your next home to live in or invest in.
Repossession vs. foreclosure
Do you know the difference between repossession and foreclosure? We can help clear things up. (Keep in mind, information on what category your mobile home would fall into — real property vs. personal property — would vary from state to state. For the most accurate information, connect with your state housing department.)
Repossession
So here’s the deal on repossessed mobile homes. Typically, mobile homes are considered personal property — much like cars. And as such, mobile homes can be repossessed. In many cases related to mobile homes, you’ll see repossession when the owner can’t keep up with payments.
Foreclosure
If the mobile home is considered real property by the state, the owner will be dealing with foreclosure if they can’t keep up with payments to the bank.
Here’s what’s interesting about a mobile home — in some states, the owner can take measures to convert it into real property. For most states, that would only happen if the owner goes through the effort of permanently attaching the mobile home to land.
Some states will allow the owner to attach the mobile home to rented land. Others would require that the mobile home owner buy their own property to affix the mobile home to, if they want a permanent setup.
Why mobile home investing?
Perhaps you’re here because you want to buy a mobile home as your next place of residence. But now your mind is intrigued by the concept of mobile home investing.
If you’re reading this because investing intrigues you, here’s why we think getting into mobile home investing is worth consideration.
There’s a demand for affordable housing
Since mobile homes are an affordable housing option, there’s a demand for mobile homes. You’ll find all sorts of demographics interested in mobile homes — families, retirees, students, etc.
And as long as you buy the right mobile home and make the right fixes, finding a buyer shouldn’t be a challenge.
But mobile homes aren’t simply affordable. These days they’re not much different from site-built homes in terms of appearance and energy efficiency. And this is good news for both the investor and the buyer.
The stigma of mobile homes is a thing of the past thanks to HUD laws.
You can start with little capital
Because mobile homes are an affordable housing option, the investor can get a foot in the door without loads of capital. If you find that your mobile home is vacant when a tenant leaves, bearing the financial burden will be much less than if it were a site-built home investment.
Oftentimes, used mobile homes can be acquired for under $10,000. That’s much less than what it would take to buy a site-built home.
Enjoy the hunt for your mobile home
Now you’ve had a rundown on the things buyers should know about repossessed mobile homes. We trust this article was helpful in your shopping journey.
In short, we’ve pointed out the benefits of buying a repossessed mobile home. We’ve also covered some of the things you should look out for prior to moving forward with a purchase. A little knowledge under your belt will go a long way in a successful buy.
Whether you’re an investment buyer or a new mobile home dweller, we wish you the best. Buying a mobile home is an exciting adventure.
Leveling and learning
We mentioned the need to level your mobile home. Do you know what that is? Learn more about leveling your mobile home. We’ll breakdown the cost and discuss hiring a professional versus taking the DIY approach.
Additionally, check out these rags to riches stories related to mobile home investing. You’ll see stories from people just like you who had a dream and nurtured that dream. We hope you’re inspired by these stories. We invite you to browse the US Mobile Home Pros blog and learn more about mobile homes. From repairs to insurance and more, we cover plenty of ground in terms of mobile home ownership and investing.