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Confusing situation, Modular vs. Manufactured

ilikethings

Thread Starter
Freshman Member
Joined
Jun 30, 2020
Professional Status
Certified Residential Appraiser
State
Colorado
Hey all,

I took an assignment recently to appraise a ranch for purchase. Looking over the house it looked modular/manufactured due to the roof pitch. As I went through, I was increasingly convinced it was manufactured, although I couldn't find any identifying HUD data (happens a lot). It's FHA, so I opened every cabinet, checked all around, nothing. It looked like the house may have been re-sided at one point as well, so no tags either.

Inspecting the crawlspace, it had four black girders going down the length with the typical cross-bars in between, but there was no belly wrap. It could have been removed as the listing stated the crawlspace had been refinished and plumbing updated.

I was pretty convinced to call it a modular and go on with my life on a 1004, but in researching the listing history, a prior sale in 2015 stated that the house had been "affixed to the property" which around here typically means a title purge. Nothing was convincing on the listing otherwise however, just that it was a ranch.

Calling the county, they looked it up and it was coded as stick-built. She kept scrolling however and there was a note that the title was purged in 1988. Again, this is typically only said when a home is manufactured.

I went ahead and made the report Subject-To an IBTS letter per FHA requirements that the home is HUD certified.

IBTS gets back today and says the following (serial numerals redacted):

The following information is provided pursuant to authorization by HUD. According to our records, the home by Clayton Homes with serial number UHXXXXA/B was not reported to us as a manufactured home.

I'm utterly stumped now. The client sent me this letter saying "Change to a 1004, home is modular." For one, I've never known of a modular with a HUD style A/B serial. For two, why would a Modular ever need a title purge? The IBTS letter does not definitively say one way or the other, just that it was never "reported" as manufactured.

So either this is Modular with a title purge recorded by mistake, or this home is manufactured and Clayton forgot to tell IBTS. Potentially the home could have been built prior to 1976 and just permanently installed much later, but that's also doubtful.

Anyone have any experience with anything like this? Any way to be certain one way or the other? Again the loan is FHA, so I'd rather not mess around.

Thanks for reading!
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Hey all,

I took an assignment recently to appraise a ranch for purchase. Looking over the house it looked modular/manufactured due to the roof pitch. As I went through, I was increasingly convinced it was manufactured, although I couldn't find any identifying HUD data (happens a lot). It's FHA, so I opened every cabinet, checked all around, nothing. It looked like the house may have been re-sided at one point as well, so no tags either.

Inspecting the crawlspace, it had four black girders going down the length with the typical cross-bars in between, but there was no belly wrap. It could have been removed as the listing stated the crawlspace had been refinished and plumbing updated.

I was pretty convinced to call it a modular and go on with my life on a 1004, but in researching the listing history, a prior sale in 2015 stated that the house had been "affixed to the property" which around here typically means a title purge. Nothing was convincing on the listing otherwise however, just that it was a ranch.

Calling the county, they looked it up and it was coded as stick-built. She kept scrolling however and there was a note that the title was purged in 1988. Again, this is typically only said when a home is manufactured.

I went ahead and made the report Subject-To an IBTS letter per FHA requirements that the home is HUD certified.

IBTS gets back today and says the following (serial numerals redacted):



I'm utterly stumped now. The client sent me this letter saying "Change to a 1004, home is modular." For one, I've never known of a modular with a HUD style A/B serial. For two, why would a Modular ever need a title purge? The IBTS letter does not definitively say one way or the other, just that it was never "reported" as manufactured.

So either this is Modular with a title purge recorded by mistake, or this home is manufactured and Clayton forgot to tell IBTS. Potentially the home could have been built prior to 1976 and just permanently installed much later, but that's also doubtful.

Anyone have any experience with anything like this? Any way to be certain one way or the other? Again the loan is FHA, so I'd rather not mess around.

Thanks for reading!

A suggestion; contact Clayton and review with them, have photo's ready and get their input.

IMO; a Modular sits or is attached to a fixed foundation; Manufactured/Mobile offers a crawl space; but I'm over here on the east coast....Good Luck
 

apt20

Junior Member
Joined
Oct 10, 2012
Professional Status
Certified Residential Appraiser
State
Illinois
where did the numbers IBTS used come from? Provided by the lender?
 

ilikethings

Thread Starter
Freshman Member
Joined
Jun 30, 2020
Professional Status
Certified Residential Appraiser
State
Colorado
where did the numbers IBTS used come from? Provided by the lender?
Not sure, they were apparently provided by clayton to IBTS for some reason
A suggestion; contact Clayton and review with them, have photo's ready and get their input.

IMO; a Modular sits or is attached to a fixed foundation; Manufactured/Mobile offers a crawl space; but I'm over here on the east coast....Good Luck
I'll give this a shot tomorrow.
 

morty

Freshman Member
Joined
Oct 1, 2020
Professional Status
Retired Appraiser
State
Michigan
Hey all,

I took an assignment recently to appraise a ranch for purchase. Looking over the house it looked modular/manufactured due to the roof pitch. As I went through, I was increasingly convinced it was manufactured, although I couldn't find any identifying HUD data (happens a lot). It's FHA, so I opened every cabinet, checked all around, nothing. It looked like the house may have been re-sided at one point as well, so no tags either.

Inspecting the crawlspace, it had four black girders going down the length with the typical cross-bars in between, but there was no belly wrap. It could have been removed as the listing stated the crawlspace had been refinished and plumbing updated.

I was pretty convinced to call it a modular and go on with my life on a 1004, but in researching the listing history, a prior sale in 2015 stated that the house had been "affixed to the property" which around here typically means a title purge. Nothing was convincing on the listing otherwise however, just that it was a ranch.

Calling the county, they looked it up and it was coded as stick-built. She kept scrolling however and there was a note that the title was purged in 1988. Again, this is typically only said when a home is manufactured.

I went ahead and made the report Subject-To an IBTS letter per FHA requirements that the home is HUD certified.

IBTS gets back today and says the following (serial numerals redacted):



I'm utterly stumped now. The client sent me this letter saying "Change to a 1004, home is modular." For one, I've never known of a modular with a HUD style A/B serial. For two, why would a Modular ever need a title purge? The IBTS letter does not definitively say one way or the other, just that it was never "reported" as manufactured.

So either this is Modular with a title purge recorded by mistake, or this home is manufactured and Clayton forgot to tell IBTS. Potentially the home could have been built prior to 1976 and just permanently installed much later, but that's also doubtful.

Anyone have any experience with anything like this? Any way to be certain one way or the other? Again the loan is FHA, so I'd rather not mess around.

Thanks for reading!
Sounds manufactured to me. Ive seen ppl go to great lengths hiding that fact. Affadavit of affixture is your smoking gun. They dont do affidavit for modulars
 

S is for spittman

Senior Member
Joined
Oct 24, 2005
Professional Status
Certified Residential Appraiser
State
Texas
Have you tried this site yet? Colorado Building Codes and Standards
There are two sections for modular and manufactured home codes.

I would first call the office of Beverly Bayley (303) 864-7836 and see what information they can give you or if they can direct you to the right person to talk to.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
There is no way to eyeball a house to determine if it is a HUD MH (built to the National HUD Building requirements.) Only the insignia will tell (which includes the stenciled, engraved or welded label numbers on the frame.) The unit may have been modified (new exterior siding and new interior cabinetry) and the data plate and labels removed. At least three times in my appraisal life I've had situations where the homeowner had kept the plate and labels and produced them for me.

No guessing on this. No taking someone's word for it. It's on your client and the property owner to provide correct documentation.

It's probably a good guess that it is manufactured and has been modified/altered which is an issue for HUD.

I would recommend completing the appraisal report subject to the EA that it is a HUD code home. Mortgagee to confirm by producing documentation. I would also strongly recommend that the foundation inspection requirement (for PFGMH) be supplemented with a structural inspection for any alterations.
 
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