Thinking of placing a bid on a foreclosed Mobile home - ??

[1freespirit]

Hello,

There is currently up for auction a Double wide that has been foreclosed on and I am thinking of placing a bid.

The home is located in a mobile home park. What other fee's can I expect to pay by should I end up getting this mobile home.

The auction house has stated I will receive clear title on the home should I win the bid.

But here is the what if's?

Who pays the?

1:) Back property taxes (I found out there is about $700 in back taxes)?

2:) What if there is lot rent owed from the Previous owners? Would I get stuck with that also OR since the park approves owners via application then I would assume this amount if any for back rent would be the previous owners responsibilty. The park could attach a lien on the house but would not this lein have to be cleared or does it simply get erased from the title since the home has been repo'd and is no longer in the previous owners name the party that legally owes the back lot rent? I would think so if I was told I would receive clear title.

Thanks so much, just trying to be a bit prepared on any hidden cost of fee's?

Thank you,

[David Oxhandler]

You are wise to look for all hidden costs. Each of your questions should be a valid concern of any intelligent bidder. .

The responsibility of the auction company is to sell the home for the greatest amount they can get offered at auction. Nothing else should be assumed

Assume NOTHING and Verify everything

It is your responsibility to do your homework (due diligence) prior to auction day.

Start with an e-mail or phone call to the auction company. Ask every one of those questions and request an answer by e-mail or fax so that you have a written record. Be sure to ask about the "Buyers Premium". this is a charge by the auction company, over and above the highest bid, that is SOMETIMES added to the price. Read all the fine print in the Auction company's printed offering.

Check with the local court system and the state DMV or agency that handles mobile home titles, to be sure that there are no existing liens on the home. The original lender and park owners may not be the only parties that could have liens against the home. In some states a lien on a MH that is not legally considered part of the real-estate, may only appear on the title records and there may be no notice or notation in the local courts.

Talk to the park owner or manager and find out if there will be any problem getting approval for you living in the park, reselling the home in place or what ever you expect you might want to do with the home if you are the prevailing bidder. Also what the park requires of owner/residents. Most parks have a list of rules and restrictions that home owners MUST follow.

Be prepared to place insurance on the home in the event that you do purchase it. Get insurance quotes in advance so there are no unhappy suprises after the sale.

Find out about the history of lot rent increases and what, if anything, your state law requires for a park owner to raise rents. Work up a study of other homes that have sold in the park recently to be sure you are not bidding more than market value.

Auctions can be very exciting and profitable. I used to operate a monthly mobile home auction in Florida. Once the bidding starts you just never know what will happen. We had 2 dealers form the same town attend an auction. These guys were fierce competitors for every sale in their area. They both got carried away by the auction process. They continued to bid against each other even after prices exceeded reasonable retail expectations. Each of them were hardened pros but that day their feud made them overbid and made me a hero with the sellers.

Do your due diligence. Know and understand all the commitments and costs as a result of the winning bid. Set a maximum price that you are willing to pay PRIOR to auction day. Don't get emotionally attached to the home. Be prepared to turn and walk away if the price exceeds your per-set maximum.

There are thousands of foreclosures available in every state. It is always better to start over than "win" headaches or hidden costs.