A mobile home, or manufactured home, is built at a factory and should meet the Housing and Urban Development, or HUD, code, according to the Federal Trade Commission. Once purchased, a mobile home is moved to the buyer's site. In Texas, mobile homes are considered real property when attached to a permanent foundation. However, if the mobile home is not attached to a foundation, then it is classified as personal property. Buying a foreclosed mobile home in Texas requires research on the condition of the home and its financing.
Instructions
1. Locate a foreclosed mobile home by using the Texas Multiple Listing Service (MLS), through a real estate agent.. You can also check your local newspaper for the list of foreclosures. For instance, in Houston, the Houston Chronicle provides a list of current foreclosures in that area. Also, go to the clerk's office in the courthouse, since Texas law requires a mortgage company to file a foreclosure notice at least 21 days before the foreclosure sale. The clerk can provide you with a list of mobile homes in foreclosure.
2. View the foreclosed mobile home to assess whether there is any damage or if repairs are needed. Generally, the foreclosing mortgage company does not do any repairs or provide disclosures on the condition. Hire a home inspector from the area to inspect the mobile home. For example, locate an inspector in the Austin area by contacting the Greater Austin Chamber of Commerce
3. Apply for a loan for the mobile home. Consider contacting the mortgage company that previously financed it. Oftentimes, they provide incentives for buyers, such as lower closing costs, since they have the title work and appraisal and sometimes a survey on file for the property. However, if a Real Estate Owned, or REO, company has the mobile home foreclosure for sale the paperwork may not be on file.
4. Compare rates by checking with local banks in Texas, such as Lone Star National Bank, United Central Bank or Patriot Bank, and mortgage brokers. Banks generally provide more financing options if the mobile home is classified as personal property, or not attached to the land and still titled as personal property, like an automobile. However, mortgage brokers are generally able to finance the mobile home at a lower rate if it is real property and set on permanent foundation with a deed.
5. Compose a contract stating the name of the mortgage company as the seller, your name as the buyer, the location of the mobile home, the price and any additional provisions, such as a title search. Using a Texas real estate agent may be beneficial when composing and negotiating an offer. An agent has knowledge regarding Texas Real Estate Commission (TREC) forms, including the OP-H form requiring the seller to disclose the property condition. Visit the Texas Association of Realtors website for a list of agents.
6. Submit your offer to the mortgage company along with a pre-approval letter from the lender you choose. The company has the right to accept the offer, submit a counteroffer or deny your original offer. However, foreclosure companies are reluctant to pay expenses associated with the sale, such as repairs and closing costs, so avoid asking for excessive seller contributions.
7. Buy the mobile home by completing the loan process with the guidance of your lender and signing the loan documents. This includes the note and mortgage on the mobile home. In Texas, you must record the deed to the property in the local courthouse after the purchase to prove ownership.
Tags: mobile home, mobile home, mortgage company, personal property, classified personal, classified personal property
