More Bank Foreclosure Sale for Manufactured Homes

by on General

It seems that bank foreclosure sale spares no one. Not even manufactured homes owned by seniors with fixed incomes.

For several years the market for single family homes has taken a beating from the foreclosure crisis. The problem has spread uncontrollably across the country that almost all sectors of the housing market, including luxury homes, were affected.

Foreclosure is now threatening homeowners of pre-fabricated homes in Brevard County, Florida. Historically, manufactured homes were more likely to be listed as for sale by their owners and were less likely to be foreclosed. However, times have changed and the manufactured home communities are seeing a growing number of foreclosures and short sales in their midst.

Manufactured homes are built by parts in a factory and then assembled at land sites. They cost less than traditional single family homes. In 2008, the average market price for a manufactured house was $64,900 compared with the $292,600 average price for a typically single-family home.

Manufactured homes are intended as entry-level purchase and ideal for people who do not have the money for large down payments. And because pre-fabricated houses were untouched by the housing bubble, only few units went into bank foreclosure sale.

Generally, manufactured homes are owned by older people who did not take out subprime loans to finance the purchase. And they are less likely to allow their properties to be foreclosed.

But the increasing insurance rates and maintenance costs are changing all that and the number of foreclosed manufactured homes is starting to creep up.

At the start of this year, about 98 manufactured houses were sold in a 5,500-home community in Brevard County. Industry experts said that mitigating circumstances rather than bad loans or overextended credit are the most likely reason for manufactured home foreclosure.

Some owners of foreclosed manufactured homes have just lost their jobs or spouses. And those who have fixed incomes have difficulty keeping up with increasing taxes and insurance.

In July, the number of foreclosed houses in Brevard County rose by 11 percent to 862. So far, manufactured houses accounted for only a fraction of the total foreclosure number.

Industry experts said that because manufactured homes are cheap, they sell quickly, thus preventing short sales or foreclosures. But with the flood of cheap single-family homes on the market, owners of manufactured homes are finding it difficult to sell their properties, leaving some of them to bank foreclosure sale.