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Manufactured home REO plus

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Chris Harrison

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Utah
Need a little help here! :roll:

Have an REO manufactured home, rural/remote location that is listed by the county as real estate and being taxed as home and land.

The inspection revealed that the Manufactures Identification Tags have been remove. Subject built in ‘95 according to toilet lids and appliances. The foundation is “stacked”, unsecured cinder blocks around the perimeter and stacked cinder block girder supports, supplemented by metal jack-stands on the dirt base :? . From the street the foundation appears to be concrete because the cinder blocks have been stucco finished on the exterior side. None of this meets building code past or present. The county is unable to find any occupancy permits or building inspections. The repairs without these problems will exceed $7,500. According to local manufacture home installer the cost to disassemble, move, install permanent foundation and reassemble could exceed $15,000.

How will I adjust for the problems of financing without the MIT’s? Cash sale only? Should there be larger consideration for “as is” value than just cost to cure? Should this be 2 appraisals, manufactured home and vacant land?

Of course the client wants 1004 with repair addendum that includes “as is”, repair costs and as repaired values.

Just another Monday :crazyeyes:

Chris
(Behind the Zion Curtain)
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
Due to lack of occupancy permit, and considering the way the property is attached to the land, I would consider the MH to be chattle property and value it as land only less cost of removal of the MH......despite what the taxing authority considers it. If the client wants the MH included as part of the value, you can get the VIN number (most of the time) off the frame near the Hitch end, and with a couple of calls get all the pertinent data. Then treat it as a MH on a permanent foundation with cost to cure being the addition of a permanent foundation.......but to me, that is real thin.......an 8 yr old MH without being permanent on the land and without the tags is probably not worth the cost of hauling off.
 

Chris Harrison

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Utah
Thanks Greg...

that's what I was thinking but need to hear it from someone else :D
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
The lender can verify the HUD building code with the information that was on the data plate inside (map of the USA) in a cupboard or closet. Also the lender can get the HUD verification using the serial number from the ownership documents. The cost to cure would be installing a foundation that meets that local entities requirements. The taxed as real estate issue sounds as if it has been already taken car of. So, it is just finding out what the local government would require for a foundation and what that would cost--and then your opinion of how it affects value.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
You can rehab the foundation without the dismanteling, etc, working around the existing foundation. If you look at the HUD Mfg Housing Foundation Manual, it's pretty easy, just labor intensive. You might figure out the requirements and check with a foundation company as opposed to a Mfg Home company.

Also, while the tags are missing, there will be lenders who will lend on it. The state should be able to provide you with when the title was surrendered, if it was. If the title has not been surrendered, then it is personalty. The previous owner's name should be enought for a look-up.

Roger
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Johnna come lately here, you've probably already sent this one, but...

I agree with Roger and JoAnn. The foundation issue may be much less involved to remedy than you expect. It all depends on your state and local codes, but you may be surprised just what little needs to be done to be considered 'permanent'. Retro foundations are more expensive than initial set foundations due to the increased labor, but not as bad as the $15,000 quote you'd recieved.

Wouldn't throw the baby out with the bath water just yet.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Just reread the orignal posting. If an engineer with the Permanent Foundation Guidelines for Manufactured Housing in his/her hot little hands crawled around under that home, they might discover it is acceptable to HUD after all. Unless the home was originally constructed with a "basement ready" undercarriage the concrete block perimeter enclosure would not provide any support and could not even touch the manufactured housing unit. The dry stacked concrete block (acceptable in non-seismic areas) and the steel jacks are the foundation, not the concrete wall, that is a skirt wall to keep out dirt and varmints. Take a look at illustration 28 in the guidebook (I think that is a page--loaned mine to a city manager so that city could write their new zoning regulations). For non basement ready homes (typical in Arizona), the perimeter enclosure is just for looks and doesn't provide any structural support at all.

More I think about your problem, the lack of an installation or building permit might be the only problem Arizona has state requirements for installation but my counties do not have building code requirements. So it depends on your state, county, city requirements.
 
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