Friday, February 12, 2010

Late Payments on Mobile Home Loans Increase

ABA CONSUMER CREDIT DELINQUENCY BULLETIN
THIRD QUARTER 2009

Mobile Home Loans & Heloc's see increases in delinquencies

However, other loan categories see decreases in delinquencies


In a recent published article, the American Bankers Association reports that mobile home loan customers are lagging behind on their mortgage payments at a faster rate during the third quarter of 2009.

http://www.post-gazette.com/pg/10008/1026632-28.stm

The ABA reports that mobile home loan delinquencies increased from 3.53% - 3.63% from Q2 to Q3 2009.

However, during the same period, delinquencies in other loan categories decreased. Auto loans, boat loans, personal loans, and RV loans saw an improvement in late-paying customers.

Why is this important to the manufactured home/mobile home finance industry?

My main lender, and the only lender that I have that finances older mobile homes ("pre-Huds") has recently increased their rates.

This rate increase affects purchase loans for mobile homes in parks built between 1970 - 1976.

But the GOOD NEWS is this: the same lender has dropped their rates a slightly for post-Hud MH's (MH's built AFTER June 1976). The rate drop seems to be only .25%.

It's my guess that the increase in delinquencies, as reported by the ABA, may lie primarily in the pre-Hud portion of their portfolio.

Rate changes in the MH chattel finance industry occur as the result of analyzing losses in specific categories, such as older MH's v. newer MH's, and double-wides v. single-wides. The lenders make regular assessments of their portfolio's performance, and decisions to change rates have little to do with the Fannie Mae conforming rate.

AND DON'T FORGET ABOUT THE IRS FIRST-TIME HOME BUYER TAX CREDIT FOR MOBILE HOMES!!

It's still a GREAT time to buy a mobile home. Mobile homes/manufactures homes in parks DO QUALIFY for the tax credit (10% of the purchase price).

Thursday, February 11, 2010

$2.5 Million Mobile Home in Malibu goes on market

Even during a nasty recession, there are buyers and sellers of million-dollar-plus mobile homes in parks in California.

The latest 7-figure mobile home listing to hit the market is in Point Dume Club, Malibu. This is a leased land park overlooking the ocean and a bird sanctuary.

But, please, don't call it a "trailer" or a "coach".

http://themaliburealestateblog.com/2-5m-mobile-home-for-sale-on-point-dume/

It's too bad we don't have ocean views here in Sacramento.

If you have any doubts that this might not appraise, guess again.

Last June, in a nearby park in Malibu, a mobile home closed escrow at $2,750,000.
And a year earlier, Matthew McCoughaney purchased a seven-figure mobile home in the same park.

http://www.radaronline.com/exclusives/2009/06/world’s-most-expensive-mobile-home-sold-2-275000-wheels-malibu

The agent who handled the sale describes this home as the most affordable way to live in star-studded Malibu. The manuf home, which is a chattel (leased land) has stunning view of the Pacific Ocean, and was an incredible bargain when you consider that Barbra Streisand is one of your neighbors whose "compound" has an estimated value of $25 Mil.

Of course, your question is: is financing available for these homes in these parks?

My main lender says: "Send us one and we'll look at it....." So send me one of these!!

Tuesday, February 2, 2010

"I have a 1964 Double-Wide: Can you help me?"

A real estate agent in Vallejo called me today about a new listing that she just took. She has a 1964 mobile home.

Before I could answer her question (the answer is No), the agent said quickly, "It was built in 1964, but it has a new roof with a seven-year roof cert".......or something like that.

Unfortunately, the DOM (date of manufacture) as it shows on the HCD Title Search is the controlling fact here, as far as lenders are concerned.

It is common to find older mobiles from the 1960's and early 70's that have had extensive remodeling, and look "almost new".

The underwriters have a very "cookie cutter" attitude about "ageing" (the age of the home).

Extensive remodeling matters very little to underwriters. Of my three main lenders, only one will consider pre-Hud mobiles. This lender's rules are pretty darn strict: 1970 & newer.

However, there is a bank that is headquartered in Goleta, CA, with a branch in Roseville, that finaces older mobiles in parks that were built in the 1960's. I referred this agent to this lender. I wish that this lender would do business with me directly, but they prefer to deal directly with the customer.

If you have a pre-1970 mobile home in a park, go ahead, PLEASE, call me, or email me.

Frequently, if I can't help you with the loan, then I will refer you to someone who might be able to help.