Calling all devil's advocates... (foreclosed, renting, mortgage)

[inave]

DH and I found an area in Blount County, in the Binfield area. BEFORE you judge, let me describe.

It's a "factory-built homes" subdivision. The streets are nice and wide with curbs. All driveways are concrete. There is even a little playground in the subdivision. It looks like it's as big as it's going to get, which isn't huge and all the homes are set back the same distance from the street. All seem well maintained, many have added rooms, garages, carports, etc. The lots are approximately 100' by 300' and the mountain views are wonderful.

If it were a "stick-built" subdivision, I would have no hesitation, although I'm sure it would be out of our price range. With this house, we could actually take out a 15 year mortgage and probably pay it off in 8.

Would you or wouldn't you? Why or why not?

[SandyOne]

Sorry, but you are going to have to provide more information.

Quoting "factory-built homes" sounds like you are implying mobile homes. Are these homes mobile homes or not? Are they on permanent foundations? Do they have skirting? Beware that mobiles on permanent foundations sometimes have skirting that camouflages that fact that they are mobiles.

There is nothing intrinsically wrong with factory built homes that are intended to be placed on permanent foundations. However, there are good factory built homes, and there are lousy factory built homes. There are also good and bad factory home erectors.

I have a friend who used to erect factory built homes. He quit his job because he felt the customers were being cheated by some of the practices of the company he worked for. Another friend bought a factory built home himself, then hired an erector. The erector was incompetent and the result was a disaster and a near divorce. When you come home and find your wife sobbing on the floor in the closet, wailing "I can't take it anymore," with a collapsed clothes pole and a pile of clothes on top of her, you know you have a problem.

[bbkaren]

We live in a "factory built home". It's a modular. And every bit the same quality as stick built--in some aspects, even higher quality. when we move to TN, we'll be building another. They're great; cheap, quick to build, no complaints.

If you're talking about mobile homes, though, I'd look elsewhere. That's been proven over the ages--they just ain't worth it--they're not held to the same standards as a standard home, the mortgage is generally a "vehicle loan" which is assessed a much higher rate of interest (last I knew anyway), quality is generally pretty poor, and their value declines over time.

[inave]

Guess I need to clarify. Sorry for the confusion. This is a mobile home, a Fleetwood. It is set up on permanent foundation with stone "skirting". I have no qualms about living in a mobile home, just not sure of the area. I realize some people have hang ups about MH but they seem better tolerated here than in other areas we've lived in.

From what I can discover, the subdivision is at least 5 years old and still looks very nice. But I can't get any info on the developer, etc. If anyone has a hint on how to research this, I'd appreciate it. I was hoping some of the CD realtors might be familiar with the area and be of some help.

Hope this answers some questions.

[bbkaren]

Hmm...well, buying a mobile is not for me, but good luck to you! There are tons of people who live in them with no problems--

I'd just hope you're getting it for a song just in case there's trouble down the line.

Good luck!

[knoxgarden]

Talk to your potential neighbors. Find out how they like living there, if there are problems, how well built the homes are. I consider that to be one of the most important things to do when researching an area for purchase.
That's the only way you're going to find out what that particular subdivision is like and whether it's where you want to live.

[SandyOne]

I will never own another mobile home. Been there done that. Still have the scars. They are a depreciating asset. Just the opposite of a site built home.

I would suggest considerable research before proceeding. Financially, you may be better off renting. It is likely that the value of the property will go down over time, or at least not keep up with inflation.

A mobile home on five or more acres can be a decent investment, if the price is right. As land becomes scarcer, people will buy that sort of place and build a new home, then dispose of the mobile. But it is unlikley that you would find that type of buyer for a mobile home subdivision. I hate to say it, but they just tend to go down hill over time.

Others may have different opinions.

[Whataride]

Originally Posted by SandyOne

I will never own another mobile home. Been there done that. Still have the scars. They are a depreciating asset. Just the opposite of a site built home.

It is likely that the value of the property will go down over time, or at least not keep up with inflation.

In terms of financing and depreciation - if it has a serial number it will depreciated over time. The term "mobile" does not go aways just because it is on a perm foundation. It could still have the axles put back under it and moved.

A good way to look at it is a home can be foreclosed, a mobile home can be reposessed.

Modular homes, however, are considered stick built and have no depreciating factors associated with them. They are classified the same as a stick built in terms of financing.

I feel that if you work with a realtor, they could find you what you are looking for in a stick built or modular home that will appreciated over time. Mobile homes usually only appreciate based on the value of the land it is sitting on.

With that said, I know a lot of people that have bought dumps, just because of the land......not saying that the mobile is a dump.

[JR AND CHARLA]

IWILL NEVER-NEVER-NEVER-BUY A MOBILE HOME AGAIN-AS SOON AS YOU BUY IT -THE RESALE VALUE DROPS -FORGT TRYING TO GET A HOME IMPROVEMENT LOAN IN THE FUTURE-BANKS DONT LOOK AT A TRAILER AS A HOME-IT WOULD BE EASIER TO SELL A EMPTY LOT THAN TO RESALE THE TRAILER.-WHEN YOU GO THRU SEVERAL BAD WIND STORMS,YOU WILL START SEEING GAPS BETWEEN FIXED ITEMS IN THE TRAILER,FLOORS GO AFTER SEVERAL YEARS,WATER LINES FREEZE UP,THE HEAT TAPE QUITS WORKING IN THE WINTER TIME-SLIDING DOORS BECOME UN EAVEN IN A COUPLE OF YEARS-STAPLES IN THE WALLS WILL START WORKING THERE WAY OUT-THE GLUE STARTS TO QUIT STICKING-PLACE BECOMES A DEATH TRAP IN A TORNADO-IF YOU HAVE A FIRE-IT WILL BURN QUICKER THAN YOU CAN RUN.WHAT MAY LOOK LIKE A DEAL RIGHT NOW WILL COST YOU IN MANY OTHER WAYS-

[gemkeeper]

Originally Posted by bbkaren

We live in a "factory built home". It's a modular. And every bit the same quality as stick built--in some aspects, even higher quality. when we move to TN, we'll be building another. They're great; cheap, quick to build, no complaints.

If you're talking about mobile homes, though, I'd look elsewhere. That's been proven over the ages--they just ain't worth it--they're not held to the same standards as a standard home, the mortgage is generally a "vehicle loan" which is assessed a much higher rate of interest (last I knew anyway), quality is generally pretty poor, and their value declines over time.

Bbkaren, we have a nephew and his buddy who are in the modular home business - all factory built. They are considered better built than the majority of stick houses. They are built under ideal climate conditions, which most stick built homes are not, they are not subjected to weeks of pounding rain on unsealed wood, which most stick built home are, and they are built by teams of craftsmen who all work under the same high standards with the same supervision, which we know most stick built homes are not. I would not have a single qualm about doing a modular.

And, I am sorry to say that I did not realize that mobile homes not only don't appreciate - even with additions and improvements, but actually depreciate. This may not be a good investment folks.