Ripped by Oakwood-Need Advice

[Patrick Schoeffler]

Help! Our dreams are turning into a disaster!
We recently completed all paperwork, and our home FINALLY arrived. This is a land/home project financed by Oakwood Homes. We're real happy with the land, but the home is a very different story. This mess has gone from bad to worse. First, our home was initially what they called an "aged inventory" home. We didn't have a problem with that, as the upgrades alone were a chunk of change, and we couldn't afford to add these upgrades into the price of a new home (2 by 6 construction, upgraded insulation, high efficiency furnace and water heater, ect). We purchased this home by the floorplan design, and looking at a few models like the one we purchased. When the home arrived Friday, I was shocked This home isn't new, and if it's any indication from it's present condition, it scares the hell out of me what the future holds. The home was manufactured in 2000, said to have set on a lot as a "display" model. This I didn't mind. Here's where the story gets unbelievable. I was told it had NEVER been occupied. Water, gas and septic had been hooked up. (there is still SH*T in the master bath toilet). The floor in the 2nd bathroom has had so much water damage, the lenoleum floor has totally peeled up away from the wall. The wood floor looks like particle board and has swollen up in several areas. The basement covering has a large section ripped out exposing what little insulation is there. (Supposed to be R-21). The home has been permanently tied down before, evidenced by all the rusty tie down straps still around the frame. Are model homes tied to a foundation at the lot? They aren't at the Tulsa Oakwwod lot, as I peeled back the skirting on several models to see. They are still on their axels, no less. All four end sections (doublewide) have been exposed to the elements, and the particle board is coming loose. It looks like a nappy head of hair. Cracks and wall seperations EVERYWHERE. Looks like mold has been growing around the baseboards, and has worked its way to the sheet rock. Water damage to the carpet and floor where the 2 sections come together. Even the carpet appears to be 2 different shades like the sun has faded it. I could go on and on but you get the message. My question is this. All papers have been signed, with the exception of the final move in, filling out the checklist, and signing off on it. I'm refusing to sign or accept the keys. What are my (and Oakwoods) legal obligations at this point? I'm into this deal (land and home) for $114,000.00 dollars. If this home is only 2 years old and in this shape, what's it going to look like in 5 years? Hell, I'm on a 30 year note that likely will take the rest of my natural life to pay off. I only want what I paid for, no more, no less. The only thing I know to do is get a attorney, but from what I've read in this forum, sounds like I'm screwed. Any help would be greatly appreciated.

[rmurray]

GEEZ...you bought a aged inventory home and never saw it...ouch..

You are in worse trouble than you think...Oakwood filed bankruptcy (chapter 11 which is corporate chapter 13) Friday...

An attorney is in order NOW...There is a strong chance that you can get out of this..It might cost a little but if I were you I would start now...Most important...DO NOT MOVE IN...this could be considered acceptance by some courts...I hope you do not have a separate construction loan...If so you might be sunk...

Good Luck..you are going to need it..

P.S. the toilet is a sure sign that it was out of stock..consumers use them all the time on our lot...Of course we clean them right away...but this home probably came from a closed lot somewhere..

[Lynne S]

Please know I mean NO disrepect to anyone who has done this, but I wonder HOW? How doesn't someone buy a home unseen? I mean, technically, we who buy new see the house sight unseen untl after it arrives, and that's after first/construction loan....
And even if the buyer doesn't see it, why would the bank not care about a house arriving in this condition?? Don't they do an appraisal?

[DonB]

Patrick,
What a nightmare, my wife and I are going to be in the process of purchasing a mobile home in the not to distant future, when I read your post it made me sick to my stomach.

We have talked to several dealers here, some good, some not so good, when I would catch them in the first lie, I got up, and walked out. It just amazes me how dishonest some folks can be. I'm in my early 40's, so I know how you feel when you say it will take the better part of the rest of your life to pay off the loan.

I have researched mobile homes,and financing until I'm blue in the face....,but I want to make darn sure that when I sign on the dotted line Im getting what Im paying for.

I will only deal with someone I feel I can trust which is why I'm considering a dealer that's 400 miles away from where I live.I'm like you in that I only want what I pay for, and the truth.

I sincerly hope that everything turns out ok for you.

[Patro]

They, (Oakwood), ARE the bank...as WELL as the manufacturer... The land/home package was all financed through Oakwood Acceptance Corp. We found the land, they financed the whole enchilada....(burrito). As far as an appraisal, I don't know. Now looking at how things are unwinding, they didn't have a damn thing to lose.
A.SOMEBODY knew something was up before Friday, and this turd was unloaded on me.
B. It was Friday afternoon when I found that more than just a few locations were shutting down and Oakwood Inc. itself filed chapter 11 (13 corp).
C. Oakwood's not the only firm having problems these days. Slow economy for most of us.
D. Our home arrived Friday morning.


As far as "not first seeing the home before we purchased it", We viewed the floorpan, which we liked, viewed 2 such models like the one we purchased. One local, one in Arkansas. Both were fully electric, I wanted gas. They found one in Louisiana like we wanted. We took it with the understanding it had only been a model, and never lived in. They were wrong. I contacted an attorney today, and will know more tomorrow. They "Freedom Homes of Tulsa" will be in Tulsa Bankruptcy Court tomorrow or Weds.

[Peggy]

Keep this forum posted. I want to know how this turns out - and good luck!

[Dan F]

This may be a dumn question but I just ordered a goldenwest. Since this is a division of Oakwood are they also bankrupt?

[rmurray]

YES....

[Jennie]

Hello,
Here in New Mexico Oakwood finally closed their lot in Gallup, New Mexico. I am glad they did, because they were selling nothing but very cheap homes and they were over priced. They are moving all their inventory into Albuquerque, New Mexico and Phoenix, Arizona.

[Threnody]

Murray, I don't know if you know this, but there are "potty locks" available. They have them in all the homes at the dealership I got my house from.