There is a lot of competition to find foreclosed mobile homes as there is a lot of profit on the purchase and the sale.
What are the best places to find mobile home repos?
Here are some places:
Estate Agents
Craigslist
The County Assessor’s Office
Sellers of mobile homes
Neighbors
What are mobile home repos?
A mobile home repo is a mobile home that is being repossessed as the debt to purchase it hasn’t been paid on time. Buying mobile home repos can help you save money on their actual value. Such property has been taken back by the lender due to non-payment. The lender wants to get the money still owed on the place, so you can often get them for less than they are worth.
With foreclosed mobile homes, you can find a place to live for less money than you might expect. If it is worth more than you pay, it may have some equity, adding additional value. When you find great deals on foreclosed mobile homes, it may be possible to offer them as a rental properties. This will also lead to a monthly income.
Where to Find Foreclosed Mobile Homes
First, forge a relationship with a real estate agent. They can then share details of listings when they find them. They will often see such information as soon as it is available. When they find you a mobile home you purchase in foreclosure status, a small commission fee can motivate them to continue to keep an eye out for you.
Your county assessor’s office will have those details available too. They only share mobile homes already in foreclosure, and the owner has had 120 days to try to catch up or modify the loan and keep the place.
If that doesn’t happen, it may be an option for you to purchase.
If it is foreclosed on through your local county assessor’s office, they must publish it in the newspaper. They will include the address of the property and a date and time for an auction.
The highest bidder will be the new owner.
Short Sale
If the foreclosed-upon mobile home is offered through a short sale, it may not be listed with real estate entities. The current owner may try to sell it on their own. With a short sale, the lender agrees to accept a given amount of money for the property. This is often less than what is currently owed on the loan. The lender accepts the lower offer so they can recoup some of the money and receive the funds quickly.
If a short sale occurs, it is done before the auction, as mentioned above. If the lender doesn’t accept the short sale scenario, the seller must determine the difference between what they owe and what they can sell the place for. They may get out from being the property owners but still owe the lender funds. They aim to sell it for what they owe or get the lender to agree to accept less. Once sold, they are no longer responsible for anything associated with that mobile home.
Money or Financing Ready
To obtain a foreclosed mobile home quickly through a short sale or an auction, you need money or financing ready to go. If you have funds in an account to work with, you can use them to purchase. However, if you need funding, a line of credit through a lender is often the way to raise it.
In either scenario, you must know how much money or financing you have available to help you decide to buy a given mobile home or pass it by.
Are mobile repos worth it?
A foreclosed mobile home is often worth more than you will pay for it. Therefore, understanding the market value as best you can is important. Usually, the mobile home is sold only, and the land where it sits isn’t included. The land may belong to someone else, or it may be in a mobile home park.
Confirm if you will have to move the mobile home if you purchase it, as that can be expensive. If it is in a mobile home park, they may authorize the purchase and allow you to live there or rent it out. Verify this information before you buy so you aren’t stuck with a mobile home in a location you can’t easily access or make rental income from.
Mobile homes are sold as-is, so if there are repairs or other problems, you have to pay for them. With a foreclosure, you don’t get the opportunity to inspect it like when you make a regular purchase. Sometimes, you can do so if the real estate agent can get you access and it is empty. However, when it is auctioned off, there is usually no walk-through or inspection first. This could be a gamble if the mobile home weren’t well-cared for.
A Place to Live
A foreclosed mobile home can offer a great place to live.
Due to their foreclosure status, many mobile homes are worth far more than what is paid for them. They have been well-cared for and lived in and don’t have significant issues.
Rental Property
Foreclosed mobile homes can be an opportunity to invest and make money. Renting them out to help pay the money owed is a good investment. Depending on the value and location, the renter may pay enough to cover all the property payments. Once these places are paid for, they continue to make you money every month.
You can also choose to resell foreclosed mobile homes for more than you paid for them and earn a profit.