Buying foreclosed mobile homes can help you save money on the value of them. Such property has been taken back by the lender due to non-payment. They want to get the money still owed on the place, so you can often get them for less than they are worth. Of course, it depends on the location and how well the mobile home has been cared for.
With foreclosed mobile homes, you can find a place to live for less money. It may have some equity in it when you buy it, adding more value overall. When you find great deals on foreclosed mobile homes, it may be possible to offer them a rental property. Once they are paid for, the money you make each month is all profit.
Where to Find them
There are resources available to help you identify foreclosed mobile homes in a given area. Forge a relationship with a real estate agent. They can share such details with you 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 should only share mobile homes 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, then it may be an option for you to purchase. If it is foreclosed on through your local county assessor’s office, they have to publish it in the newspaper. They will include the address of the property and a date and time for the auction to take place. The highest bidder will be able to purchase it.
If the foreclosed-upon mobile home is offered through a short sell, it may be listed with real estate entities. The current owner may try to sell it on their own. With a short sell, 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 agrees so they can recoup some of the money and receive the funds quickly.
If a short sale is going to occur, it is done before the auction process mentioned above. If the lender doesn’t accept the short sell scenario, the seller must come up with the difference between what they owe and what they can sell the place for. They may get out from under the property owners but still owe the lender funds. Their goal is to sell it for what they owe or to get the lender to agree to accept less. Then it is sold, and 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 sell 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. If you need financing, a line of credit through a lender is often the way to go. In either scenario, you know how much money or financing you have available to help you decide to buy a given mobile home or to bypass it due to the price.
Are they Worth it?
A foreclosed mobile home is often worth more than you will pay for it. Understanding the market value as best you can is important. Often, 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 in advance 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.
They 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 you make a regular purchase. Sometimes, you can do so if the real estate agent can get you access and empty. When it is auctioned off, there is usually no walk-through or inspection first. This could make it 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. You may feel a bit guilty at someone else’s misfortune. They aren’t able to keep up with the payments for some reason. This can be due to health, a divorce, a death, changes in income, or another scenario. Hopefully, they will be able to rebound from it and have a brighter future.
Don’t let this stop you from saving money on a foreclosure. You may have plenty of equity in it as soon as you make the purchase. Many mobile homes are worth far more than what is paid for them due to the foreclosure status. They have been well-cared for and lived in and don’t have major issues.
Foreclosed mobile homes can be an opportunity to invest and make money. Renting them out to help pay for the money owed is a good idea. Depending on the value and location, the renter may pay enough to cover all the property payments. Once these places are completely paid for, they continue to make you money every single month. You can also choose to resell foreclosed mobile homes for more than you paid for them and earn a profit.