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Oakwood Homes Bankrupt

Discussion in 'Manufactured Housing' started by David S. Roberson, Dec 2, 2002.

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  1. David S. Roberson

    David S. Roberson Senior Member
    Gold Supporting Member

    10
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Did anyone else get the announcement from Oakwood Homes concerning their "immenent bankruptcy"? They blame this on many factors, primarily that "our poor loan performance, coupled with declining recovery rates in the wholesale repossession market, have resulted in the Company's loan servicing income being substatially eliminated." They further state that "annual repossessions have increased to more than 50% of new home shipments." (That means that you have a greater than 50% chance that the double wide you appraise today will be foreclosed on in 12 months.) I can't help but wonder how they got into this situation if they had unbiased, honest appraisals of the properties they were financing. The last order I got from them (about 8 months ago) was cancelled because I wouldn't commit to an inflated appraisal. Now the stockholders in this company (NYSE:OH) will pay for inflated appraisals. It's as simple as that.
     
  2. airphoto

    airphoto Senior Member

    0
    Jan 15, 2002
    Professional Status:
    Retired Appraiser
    State:
    Pennsylvania
    David,

    Proof that there is a God in Heaven .. and he makes his face to shine upon us!
     
  3. Willie

    Willie Senior Member

    0
    May 30, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Tennessee
    David, I heard it too. I haven't done anything for them in years. I knew they were in trouble in about 98 or 99 when they had hundreds of singlewides parked in a field in Pulaski TN. They later sold them at auction, with Donnie Meadows Buying his fair share. It is my understanding that a long time ago, Oakwood was a good company. They've been hanging on for years. Honest appraisals would have helped some but tighter credit would have helped more. Those idiots up at Oakwood Acceptance should have had a clue and made the lot managers responsible for collecting and losses. It's not as if they aren't the same company. The lot managers usually know which ones will come back and which won't. They are in trouble because they let terrible credit people in , as most MH lenders did. Now hardly anyone will finance them. After 6 month of living free with slow or no payments and a few holes in the walls, and the aroma of dog turds smushed in the carpet, they give it back to the mortage company. They usually won't fix it much and sell it for a massive loss.

    Hope things are going well for you in Cookeville. I met you a couple of years ago at a Vacant Land Appraisal CE class by McKissock. It is beautifull country up there.
     
  4. Willie

    Willie Senior Member

    0
    May 30, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Tennessee
    David, it's bad enough when the MH finance Comp. belly up or pull out (Conseco, Bank of America,Greenpoint, Bombardier, CIT, MCI/FirstMerit Bank, United funding, Dynex, Associates, Ford, etc, etc) because of bad credit buying and inflated appraisals. It is my understanding that FHA is currently buying and has been for several years MH deals that not even the MH finance companies would finance at even lower interest rates. I don't do these thank goodness, because all these deals are about to come back on FHA appraisers, at least in the form of FHA grading system. Ouch. Too bad the FHA doesn't let the appraiser pick the borrowers credit scores. Leave it to the gov't to screw thing up and get things backwards. We aren't the fools that finance people right out of bankruptcy, or ill financial situations.
     
  5. slacker

    slacker Junior Member

    0
    Feb 20, 2002
    November 26, 2002 6:16 PM






    By Tom Becker
    Of DOW JONES NEWSWIRES


    WILMINGTON, Del. -(Dow Jones)- Oakwood Homes Corp. (OH) Tuesday won interim approval of a $25 million credit agreement with Foothill Capital Corp. that the debtor company said is critical to its survival.

    Oakwood Homes is still negotiating the terms of a $215 million loan with Greenwich Capital Financial Products Inc., Warren Buffett's Berkshire Hathaway Inc. (BRKA), and Ranch Capital LLC.

    The $25 million interim loan will be enough to cover expenses through the Dec. 18 deadline to reach an agreement on the final loan, said Robert J. Dehney, an attorney with Morris Nichols Arsht & Tunnell, the firm representing the debtor company.

    A hearing to consider final approval of the possible $215 million loan is scheduled before Chief Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington on Dec. 18 at 5 p.m. EST.

    (This story was originally published by Dow Jones Newswires)

    Copyright © 2002 Dow Jones & Company, Inc.

    All Rights Reserved
     
  6. David S. Roberson

    David S. Roberson Senior Member
    Gold Supporting Member

    10
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    I don't know about their credit agreements or operating expense loans; the bulletin I got did not address any of that. It does state, however, that as of November 15, 2002, they had already "closed their loan operations in Texas, five manufacturing plants in several states, and intend to close 75 retail locations, principally in the Deep South, Tennessee, and Texas markets." They "expect to emerge from bankruptcy in a matter of months." They also say that "post-petition claims will receive priority over pre-petition claims. Thus, going forward, you will be paid for new orders on time and in full." You know what that means for anyone holding invoices from before the petition was filed. You are SOL, plain & simple.
     
  7. David C. Johnson

    David C. Johnson Senior Member

    0
    Jan 15, 2002
    Intesting thread. Thanks, fellas.

    Somehow I am suspicious the
    Privatize the Profits; Socialize the Costs
    game is again part of the grand equation / master plan.

    dcj
     
  8. slacker

    slacker Junior Member

    0
    Feb 20, 2002
    SURE!!! O.K.!!


    <span style='color:blue'>Right on the money, what ever's left. Those old invoices have already been prioritized right to the hopper.

    Look on the bright side if you are waiting for money. There is about a 1% chance that you will see roughly 2 to 10 cents on the dollar if they ever emerge.

    There was another post regarding expense write-offs. Don't forget "Bad Debt" as one of those. Always insist on Cash in Advance, COD, or at the most, payment "net receipt" for all post petition clients.

    Fortunately I have never done any business with their lending operation.</span>
     
  9. Austin

    Austin Elite Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Virginia
    This morning on the front page of the local paper was a full-page spread on single wide, mobile, stick built, and modular homes. There were graphs from 98 to 2002 showing the breakdown of sales for each category. There is a big zoning war raging here on this subject. Bottom line is: Single-Wides are a thing of the past. Below are two stories from yesterday’s paper on this subject.

    http://www.registerbee.com/news/MGBHDQIC69D.html

    http://www.registerbee.com/news/MGBDFFFC69D.html
     
  10. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    25
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    That reporter needs to either read my article on the NAIFA website or check with the Manufactured Housing Institute's website! Single wides built after 6/15/1976 are constructed to the same HUD building code that is used for double wides, triple wides, two story, multi-wide, etc, etc. A modular home built to a site built code like UBC, CABO, BOAC, etc, could also be single wide, double wide, triple wide, two story, multi-wide, etc. Otherwise, the articel wasn't too bad--just very confusing because of the wrong terminology!
     
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