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Manufactured Housing, Mobile homes etc

Discussion in 'Michigan' started by Michigan CG, May 7, 2007.

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  1. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    93
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    It appears to me that there are a lot of manufactured homes in addition to the obvious amount of mobile homes in Michigan. Although I do not do much residential, I thought I might want to learn about it before I move (or after) to Michigan.

    I try to take AI classes, but do not see any from the Institiute available that are convenient for me. Is there a good education provider for these types of properties in Michigan? I have no idea what to look for in these properties but would like to have the competancy to do such work.

    Will be living south of Detroit, near Ohio.

    PS. Looking to find a way to get tickets to the Kansas City Chiefs/Lions game in late December in Detroit. Will be my 14 year-old boy's 6th Chiefs game.
     
  2. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    17
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Take Rich Heyn's seminar on appraising factory built housing--either in person or on line through the Appraisal Institute. Read all the posts and links in the Manufactured Housing section of this forum as preparation for the seminar. Then spend time at the local assessor's office to learn their policies and procedures, next visit the county recorder/clerk where deeds and documents are recorded for their policies and procedures. Then visit the local building and zoning departments. Study the local MLS system--or are there a large number of FSBOs--and how can you track them.
     
  3. Narkissos

    Narkissos Junior Member

    0
    Jan 9, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    I took the online course, I highly recommend it. Although if possible live is always much more interesting.

    Timothy, I know you said you were moving to the Monroe area. You will find a plethora of manufactured homes in this area. One thing about many of the Townships in that area: Frenchtown, Berlin, etc... The assessing information is often incorrect. Properties are listed as modular construction. Fortunately the building departments in these communities now keep detailed records. You should be able to find plans, placement permits, copies of the data plate info, etc... The assessing departments in these areas often make no distinction between mod and manf. homes. You will find this true through out a large portion of SE Michigan. There are only a few cities and townships that keep specific records for manufactured home sales. Do not waste your time trying to search the mls by limiting your search for Mods / Manf. homes. Over 90% of the mod/manf. homes are not entered into the mls systems as such. You will learn very quickly not to rely on mls listings in this market area. The Monroe Mls is much more accurate than the DownRiver Mls. Many of the agents dealing with properties in Monroe County actually take the time to call the townships to find out the sq.ft, age, site size, etc...
     
  4. Larboard

    Larboard Member

    0
    Jun 25, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    Tickets don't go on sale for individual games until July 6, 2007, 10:00 AM. You can get them through TicketMaster. Check detroitlions.com for more info on type of tickets, seating, etc.
     
  5. Mr Rex

    Mr Rex Elite Member

    85
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    In addition to the suggested CE see if you can tour a HUD code plant as well as an on/off frame modular plant to see firsthand the subtle differences that result in different quality levels of the different types of construction. Don't just look at the structural aspects, pay attention to the windows, doors, trim, cabinetry etc that result in the lower quality manufactured homes depreciating much faster than site built or similar quality modulars. So many manufactured buyers are dazzled by the spit and polish that they don't realize what they are really getting.
     
  6. Mary Tiernan

    Mary Tiernan Senior Member

    0
    Dec 16, 2003
    Professional Status:
    Retired Appraiser
    State:
    Michigan
    You are so right - Michigan has more manufactured housing than any state I've ever driven through or lived in. Nebraska and Iowa both have pretty strict rules about placement of manufactured houses - not in a city, etc. Here, you see single wides in developed cities. Still boggles my mind.

    Some of the more rural areas have a high percentage of manufactured housing - this is a direct result of vacation/second properties. Many of the older single wides were utilized as hunting camps only. Also, due to the economics of small town living, manufactured housing is prevalent in the rural areas due to affordability.

    Many townships are now enacting building codes which restrict the width of any improvement to not less than 24' - this will result in fewer and fewer single wides.

    In July 2003 the State of Michigan enacted Senate Bill 425 which allows an owner of a manufactured house to file an Affidavit of Affixture. This affidavit has the concept of "retiring" the title to the manufactured house making it part of the real estate - previously, a manufactured house would be considered personal property in some jurisdictions, and when the property went into foreclosure, the manufactured house was taken off the site and the lender was left with the vacant land only. Dealers are retiring the titles as part of the closing on newer manufactured houses.

    Some homeowners/builders are confused and assume the affadavit of affixture makes the manufactured house "site built."

    It should be noted that under this bill if the title holder becomes owner of manufactured house through foreclosure or deed in lieu of foreclosure the affadavit of affixture must be filed. This is part of my addendum on manufactued housing in Michigan:

    Appraiser’s Supplemental Certification for Manufactured Housing
    The construction quality of manufactured housing is a significant determination of value. This appraiser has adequate experience and knowledge in the appraisal of manufactured homes in this area to adequately estimate the fair market value. The manufactured house complies with all HUD requirements unless otherwise stated in the comments section. The comparable sales in this appraisal are single transactions and are not the result of combining vacant land sale with the contract purchase of a manufactured home. Sales and listings of similar manufactured houses have been reviewed and analyzed, and this report uses at least two similar manufactured houses as comparables, unless otherwise mentioned in the report.

    The State of Michigan enacted Senate Bill No. 425 on July 14, 2003 enabling the owner of a manufactured house to retire title to such improvements thus restricting the conveyance of the improvements as part of the real property to which it is affixed. Certain requirements must be met, and specific instructions must be followed.

    Also, according to Senate Bill No 425, subsection (7):

    “If the holder of a lien or security interest becomes the owner of a mobile home affixed to real property through the process of real property foreclosure or through a deed in lieu of foreclosure under subsection (6), the holder shall submit an affidavit described in subsection (1) to the department after the redemption period for the foreclosure expires or the deed in lieu of foreclosure is recorded and the department shall cancel the certificate of title for the mobile home.”
    http://www.michiganlegislature.org/documents/2003-2004/publicact/htm/2003-PA-0044.htm

    I consider this relevant information for the client as the law does require the title be retired in the event of foreclosure. Many homeowners do not know where their title is, or have destroyed their title due to a previous appraisal which called the improvements site built. Obtaining a title can be a time consuming process.
     
  7. Mary Tiernan

    Mary Tiernan Senior Member

    0
    Dec 16, 2003
    Professional Status:
    Retired Appraiser
    State:
    Michigan
    Also, I try to incorporate the following wording in refinance appraisals:

    In Michigan, manufactured houses are taxed as real estate as evidenced by assessor's records. This does not mean title to the manufactured house has been retired as outlined in Senate Bill 425. See comment addendum.
     
  8. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    17
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Good comments except I have a suggestion ("estimate the fair market value"). If the 1004C form is being used, as appraisers we are developing or offering an opinion of market value. Appraisers don't estimate and fair market value is not used for a typical mortgage. Fair market value is sometimes requested for REO properties so that the client can determine what liabilities they have on the books.
     
  9. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    93
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Well Mary I knew I needed to take a class on it to educate myself, but now after your post think I will also find a book about it too. Thank you for all the infomration.
     
  10. Mary Tiernan

    Mary Tiernan Senior Member

    0
    Dec 16, 2003
    Professional Status:
    Retired Appraiser
    State:
    Michigan
    Hey, thanks Jo Ann - been a long time since that paragraph was edited and I had to look real close to see what you were talking about. The paragraph came directly from a Fannie Mae notice to lenders back in 2003. I will edit my addendums now.
     
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