How to Buy Repo Mobile Homes

How to Buy Repo Mobile Homes
Image Credit: Mark-W-R/iStock/GettyImages

Buying a repossessed mobile home is similar in some respects to buying a repossessed traditional home, but much different in other respects. Just as with a traditional home, an inspection is vital, since a repossessed mobile home is sold in as-is condition and any repairs are your responsibility. This applies whether you're buying in bulk for resale or as a principal residence. It also matters greatly whether the home is on a permanent foundation or comes with no land.

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Real Estate vs. Personal Property

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Home search and financing options depend on whether the home is classified as real estate or personal property:

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  • A repossessed home that comes with land and a permanent foundation is classified as real estate

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  • A repossessed home that comes with no land or a permanent foundation is classified as personal property

The difference is that a mobile home classified as personal property often is more difficult and expensive to finance. Although government-financing programs are available, a repossessed home in poor condition may not qualify. Instead of getting a mortgage, you may need to finance the purchase with a personal loan, which typically comes with short repayment terms and higher interest rates.

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Additionally, in contrast to real property that has an appraised value, the worth of personal property is assigned according to a blue book value, which often is significantly lower. This can be especially important if you're buying in bulk.

Price Expectations

Purchasing a repossessed mobile home can result in considerable cost savings. Construction costs per square foot for a new home already average from 10 to 35 percent less than a comparable site-built home, and according to 21st Mortgage Corporation, a manufactured home lender, a repossessed home is often sold for 20 percent to 40 percent less than its market value.

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Where to Search for Repossessed Mobile Homes

You can search for repossessed homes classified as real estate just as you would a site-built home. Options include real estate agents, online real estate listing sites, auctions, newspapers and banking websites.

Options for both types include mobile home-specific sites such as MobileHomeLiving.org, which lists a number of search options.

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