Sometimes you just have to shake your head

[timd354]

Legal Description from an appraisal report that came across my desk this morning: INCLUDES M/H S59078 KIT 1968 60X12. THAT PORTION OF THE EAST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 18, TOWNSHIP 35 NORTH, RANGE 5 EAST, W.M., LYING NORTHWESTERLY OF......

Comment included in the same appraisal report:
Mobile home was considered personal property and NO VALUE was given

 

[ucbruin]

Financing For Manufactured Homes Is Often Refused​

Obtaining a loan to buy a manufactured home can be very difficult. Pew’s research indicates that fully 54% of applications for manufactured home financing are denied by lenders, even where these applications contained all the information required for underwriting the loans. This refusal rate stands in stark contrast to the refusal rate for “traditional” mortgages for site-built homes, which was just 7% in 2021.1

Pew Trusts. “Data Shows Lack of Manufactured Home Financing Shuts Out Many Prospective Buyers.”



There are a number of reasons for this disparity. One of the principal reasons is that more than 75% of new manufactured homes are purchased as personal property (as mobile home buyers often must rent the land on which their homes sit) rather than as real estate, and personal property is very unlikely to be covered by federal loan programs. While the FHA have a program designed to make these loans more easily available – the Title I Manufactured Housing Program – it is virtually unused.

 

[Non Sequitur]

Legal Description from an appraisal report that came across my desk this morning: INCLUDES M/H S59078 KIT 1968 60X12. THAT PORTION OF THE EAST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 18, TOWNSHIP 35 NORTH, RANGE 5 EAST, W.M., LYING NORTHWESTERLY OF......

Comment included in the same appraisal report:
Mobile home was considered personal property and NO VALUE was given

Oops.

 

[TerryRohrer]

Form fillers fill out forms like box checkers check boxes. There is seldom a thought involved.

 

[Mark K]

Legal Description from an appraisal report that came across my desk this morning: INCLUDES M/H S59078 KIT 1968 60X12. THAT PORTION OF THE EAST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 18, TOWNSHIP 35 NORTH, RANGE 5 EAST, W.M., LYING NORTHWESTERLY OF......

Maybe the appraiser thought that the highlighted section was part of a metes and bounds description. I've met a few that have never encountered a m/b. Anything other than a Block and Lot# description may as well be Latin.

OTOH, I've never seen a 12 x 60, 1968 MH that was worth more than scrap value. Maybe just a brain **** on his/hers part.

 

[Sadie]

Legal Description from an appraisal report that came across my desk this morning: INCLUDES M/H S59078 KIT 1968 60X12. THAT PORTION OF THE EAST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 18, TOWNSHIP 35 NORTH, RANGE 5 EAST, W.M., LYING NORTHWESTERLY OF......

Comment included in the same appraisal report:
Mobile home was considered personal property and NO VALUE was given

F/F won't lend on a 1968 MH, it a mobile home at that point. Unless weirdly that is the model #. I could have been a poorly described client request.

 

[timd354]

F/F won't lend on a 1968 MH, it a mobile home at that point. Unless weirdly that is the model #. I could have been a poorly described client request.

It is a 1968 mobile home that has been affixed to the property and is clearly a part of the real estate since it is referenced in the legal description of the property

 

[timd354]

Maybe the appraiser thought that the highlighted section was part of a metes and bounds description. I've met a few that have never encountered a m/b. Anything other than a Block and Lot# description may as well be Latin.

OTOH, I've never seen a 12 x 60, 1968 MH that was worth more than scrap value. Maybe just a brain **** on his/hers part.

I agree that most 1968 mobile homes are worth little or nothing, however this one is located in an expensive area that has a chronic housing shortage and the mobile home has been well-maintained and is occupied.....My guess, based on the location, is that the mobile home probably brings in at least $1500 per month in rent, thus it likely has fairly significant value.

 

[timd354]

F/F won't lend on a 1968 MH, it a mobile home at that point. Unless weirdly that is the model #. I could have been a poorly described client request.

I don't know what the client requested, however the appraiser should know better than to exclude part of the real estate in a real property appraisal that was completed "as-is".

 

[Sadie]

It is a 1968 mobile home that has been affixed to the property and is clearly a part of the real estate since it is referenced in the legal description of the property

That is a lender problem and apparently an appraiser problem. Maybe an HC asking to not value as real estate the MH? But if so should have been clear. I think maybe the OA is confused about the difference between what F/F will lend on and what is real estate.