Confused: Someone explain the difference.

Discussion in 'Homesteading Questions' started by Kenneth in NC, Nov 15, 2004.

  1. Kenneth in NC

    Kenneth in NC Well-Known Member

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    For over an hour today I was subjected to a lecture that makes no sense. Here's the gist. A Banker I was talking with said that loans on single-wide mobile homes are getting harder to get because there not on permanent foundations.

    If a mobile home is on Block Pillars and Hurricane Strapped down. And say a 20 foot deck and a porch has been added. What is the difference in this and a older farm house built on rock pillars? Both can be moved with difficulty both neither one is likely to be moved.

    Then he injects the "brick Underpinning" Ok I've looked under homes with brick underpinning back when I helped install A/C units. The brick doesnt actually meet the "Modular Homes Frame" It's pretty and Yes I'll agree more viable than vinyl skirting but it doesn't make for a permanent foundation.

    So who sets up the rules and picks and chooses which foundation is loanable today?

    :confused: Kenneth in NC :confused:
     
  2. BobBoyce

    BobBoyce Well-Known Member

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    You've probably heard the saying, money rules...

    Those with the money make the rules. I know, some of the junk they use to justify their decisions are rediculous.

    That's why I would like to build our next home ourselves, as we can afford, and to heck with the banks and a mortgage.

    Bob
     

  3. Timberline

    Timberline Guest

    "That's why I would like to build our next home ourselves, as we can afford, and to heck with the banks and a mortgage."

    Amen to that.


    At the rate hurricanes have come through this year, and are "predicted" to come through for the next several to come, my guess is that this guy will feed you ANY excuse to avoid putting a mobile investment in his portfolio.
     
  4. BamaSuzy

    BamaSuzy Well-Known Member

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    My daddy was a home-builder (thankfully well before this age of building inspectors!) and my husband is a licensed electrician/handyman. It doesn't take anyone long at all in most any city in most any state to see that the rules and regulations ONLY apply to those who aren't in the "clique."

    If they know the builder, many times they don't even LOOK at the work! (and that includes my husband sometimes!)

    Rules of foundations, bankers, and all that are pretty much the same. Money, OR who you know OR who you are, makes all the difference.

    The real world is not fair and never will be so we have to adapt! (and work around it as homesteaders!)
     
  5. mpillow

    mpillow Well-Known Member Supporter

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    Our place is a single wide "Modular" home that was set in place by a crane onto a concrete block foundation(2ft) with 4 ft frostwall. Not on wheels. The crawl space is gravel. No problem with financing even thru first- time homebuyers program and it was 13 yo when we puchased.

    My sister had a mobile home she wanted to buy and in order to get financed she had to put a concrete pad (slab) with built in tie downs. The money was escrowed for work done within 60 days of closing.
     
  6. poppy

    poppy Guest

    When we financed our doublewide in 1994, we had no trouble at the bank. But, our loan officer said they were getting strict on the loans on them because of the repo rate. Lots of young newlyweds were buying them and then breaking up and letting them go back. I don't think it is the house as much as it is who's buying it. Course, they can't descriminate, so it makes it harder on everyone.
     
  7. DrippingSprings

    DrippingSprings In Remembrance

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    Never understood the whole thing myself. We had a f4 twister come through here a couple years ago. I saw some trailers both singles and doubles that were left intact and huge brick homes completely destroyed just a few yards away. I know that generally a mobile home isnt as sturdy. But I have seen houses (especially in florida) that the walls werent so thick that you couldnt put your fist through it. Alot of the fancy high end homes thrown together from prefab materials in sub divisions actually are not as sturdy as most mobile homes. Now you take some of the old houses and they tend to withstand weather better. We had the two twisters within eight hiours and the newer houses were destroyed twice as much as older ones. Prefab walls and roof trusses made of particle board and staples are to blame. Besides if you take a direct hit in a mobile home oyur toast anyway. Why save just the frame with straps lol
     
  8. Gary in ohio

    Gary in ohio Well-Known Member Supporter

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    A single wide moble home in general drops in value the older it gets. A foundation based home grows in value.

    Money lending insititutions generally want to treat a moble home as a car, Quick simple loan. Then do a land loan for something of value.
     
  9. rambler

    rambler Well-Known Member Supporter

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    People with the money (banks, insurance companies, govt agencies) make the rules, then interput them selectively to add to the money - not to be 'fair'.

    But then, that works all the way around. Local car repair place has a sign, all bills paid before you get the car back, all new engine blocks paid before ordering. My family does so much business there, I have a hard time paying him, he never has a bill ready even a week after I have the car back... Family member is driving a truck with new long block for 2 weeks, not paid for.

    Rules like this are set up to protect the person with the money. As long as there is little risk, the rules can be ignored.

    A single wide mobile is a pretty low investment, and is typically the type of thing that gives a bank _the_ nost trouble. For the smallest loans, they have the biggest headaches....

    It's not about the type of foundation. It's about the typical person walking in the door. Many people, many of us here, might not be the typical person - but, the rules are set for the typical person...

    --->Paul
     
  10. Kevin and Laura

    Kevin and Laura Well-Known Member

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    Our bank won't even finance any type of mobile home loan anymore. They just made the decision about 1 year ago to stop. So when we bought our double wide, we had to go through a mortgage company. (Still got a really low fixed rate.) The loan president we talked to at the bank was in the process of trying to get the rule changed, as he had worked in that industry before coming to the bank and didn't want to be turning down customers with excellent credit. I would just have liked to have all our business in one place.

    He said the difference is that any type of mobile home can always have the wheels and tongue put back on and be moveable again. Yeah, I know you can move permanent homes too, but they're not designed with mobility in mind like a mobile home is. Anyway, that's what he said.

    Laura
     
  11. rio002

    rio002 Well-Known Member

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    We tried refinancing our doublewide this summer, it is set on blocks (no wheels) and valued as real property as it can never leave the property without being demolished (it was originally moved here via the neighbors pasture because the driveway is steep and too curvy for it to fit, of course now there is a barn on that pasture and fencing so it cannot be moved and reset elsewhere) However, the inspector told me that he was close to quitting as an inspector because the state kept changing the rules and making too hard for the little guy to even get a place let alone refinance it ( he also is of homesteader ideals) But he said to make a long story short is: the ones that make the rules stricter regarding foundations/permits etc. make them because it doesn't affect them or their families--ie: show me one "suit" who lives in a mobilehome. Thus they don't care if our place is never going to be moved, or that we have made timely payments for 8 years, or that we have put in a 20x20 barn, new garage, new decking, landscaping etc. All the higher ups see is the standard "idea" of trailer parks--we've all seen them, the stereotypical eyesores created by bad landlords and people who just don't care what their surroundings look like because they are in a park (however there is usually 3-4 trailers where you can see people have landscaped, grew grass, and decorated their lot, but "suits" don't care for us if we're in a trailer because to them it's substandard in their view) In fact to get ours up to the "new codes" it would've cost approx. $5000! The only good thing is that we had our mortgage in place before the changes therefore our contract was "grandfathered" in under the terms we had at the time of the changes. I wish you luck, because most of them are already in their condos, with nice retirement packages, busily deciding how to screw us some more.
     
  12. Mudwoman

    Mudwoman Well-Known Member

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    He who has the money has the power. The mortgage company makes the rules and decides what they will loan against and what they won't. Doesn't have to make sense to you, it just has to make sense to them.
     
  13. Kenneth in NC

    Kenneth in NC Well-Known Member

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    Golden Rule
    He that has the Gold...RULES :worship:

    So it is with contractors, banks, lenders and mortgage companies.

    I had heard that it was a political movement to force the really poor to live in apartments rather than a singlewide mobilehome. Just didn't want to believe it.

    Kenneth in NC
     
  14. goatlady

    goatlady Well-Known Member Supporter

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    Actually banks are reluctant to make mobile home loans because they cannt SELL the loan on the secondary market and recoup their $$ immediately. The FannieMae, GinnyMae corps. will not buy mortgages on residences without a foundation so if the local bank make a loan on same the bank has to keep the loan, service it, and only recoup their $$ in monthly payments, not in a discounted lump sum by selling the loan to FannieMae or GinnyMae. It's all in the turn-around of the bank's $$ and assessets versus liabilities on the banks books. The in-house loan is a liability and lowers the bank's liquidity position.
     
  15. kentuckyhippie

    kentuckyhippie Well-Known Member Supporter

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    this reminds me of something funny a neighbor of mine did once. he had been having a real hassel trying to get money from the bank to buy a place to live. They wouldn't loan him money to buy a used mobile home, said he would have to get a new one or it wouldn't stand good for the loan amount. He didn't want to be in debt that much, just wanted a couple thousand to get a good used one but they insisted that they couldn't loan on a used home. So he picked out a brand new one, got the loan all done, had a concrete slab poured and while the concrete was still wet, pulled in the mobile home, took off the wheels and let the axels down in the wet concrete. went three months and never made a payment on the loan. when the bank finally got in touch with him he told them to come get their trailer cause he no longer wanted it and of course they couldn';t move it without destroying it. they also couldn't sell it because the ground wasn't tied up in the loan and still belonged to my neighbor. last I heard the trailer was still stuck in the concrete and he was still living there. that was a real permenent foundation LOL
     
  16. ratherbefishin

    ratherbefishin Well-Known Member

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    I'll top that-I had a friend who was in the RCMP and going around one night noticed some suspicious looking charactors hanging around a lot where mobile homes were stored prior to sale.He decided to check back and sure enough he caught them in one of the mobile homes, they had broken the lock.He of course arrested them and was doing the paperwork - clear case of ''break and enter'' right?Not right-His sargeant came around and asked where he arrested them- and when he said he had caught them inside the mobile home- the sargeant asked himif the mobile home was on a perminent foundation, or on blocks, and when he was told they were on blocks- he told my friend they had no case for break and enter- the definition of a ''dwelling'' was a home on a perminent foundation- best they could get them was ''mischief ''and it wasn't worth the court time....go figure!!!
     
  17. Kenneth in NC

    Kenneth in NC Well-Known Member

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    had a concrete slab poured and while the concrete was still wet, pulled in the mobile home, took off the wheels and let the axels down in the wet concrete. went three months and never made a payment on the loan.

    Now that's a Permanent Foundation :haha: :haha: :haha:


    I was going to say I understood the banks policy...but I don't :confused:
    We the homesteaders that have lived on our places for years and decide to refinance were denied if we have a mobile not on a permanent foundation.

    :D Maybe we should all get together and start a "Homesteader Bank and Trust" :D