Does just hearing the words “manufactured home” or “mobile home” make you cringe? Are you tired of dealing with the Department of Housing and Community Development? Does your mobile home title work get kicked back even though you followed instructions exactly? Do you enjoy endlessly fighting with previous lenders for titles or lien satisfactions? How many hours of your life have you wasted standing in line at the DMV? Do your sellers really have titles? Are they still in some dead guy’s name from three sales ago?

If you are a Title Company, the manufactured home may have never been transferred into your seller’s name or been detitled. Yikes, it may still be in the name of the third owdener back, or in the deceased mother’s name, or in the name of the bank that foreclosed it six years ago, or in the ex-husband’s name who is now in jail.

If you are a Lender, one of your primary concerns with manufactured homes must be whether the settlement agency will make certain that your lien is perfected and that your security interest in the mobile home title is protected. Sadly in this environment, you need to take the approach: “Close ‘em so you can foreclose ‘em.” Title companies, as a rule, excel at closing land deals and often forget that the manufactured home titling process is another layer of the loan.

OnTheLevel can team with you to avoid the manufactured home madness. Unless there is a recorded 413, 433A or 433C on the property, the home is titled as personal property and the process of detitling must occur in order to meet the ALTA 7 requirements. If it is determined on the front end that no such recorded documents exist, we can immediately run a title search with the Department of Housing and Community Development (HCD) and determine what will be needed to meet the ALTA 7 requirements. We can then present the options for resolution, whether it is simply administrative paperwork or working with the requisite building jurisdictions to install a permanent foundation to get a 433A. In 433A transactions, we will provide you a copy of the recorded 433A document so you can present your loan documents for signing. Then as a post-funding condition, we will finish the detitling with Sacramento. We can assess the cost for services at the front end so the loan officer can include on the Good Faith Estimate. The costs can range from moderate for an administrative service to pricey if a foundation installation will also be required. All costs can be included on the HUD-1.

Real Estate and Foreclosure Attorneys

Manufactured homes have been transferred incorrectly done for years. In many case the land is owned by one individual and the home in another as escrow companies often forgot about detitling the home and conjoining home and land, therefore making foreclosure impossible. Manufactured homes must be handled differently than regular homes as they are the only form of housing that can be titled as either personal or real property. Since all homes installed since 1980 have a separate Assessor’s Parcel Number, many homeowners, escrow companies, and lenders etc. have inferred if the home has an APN, then it is real property. Wrong! Unless there is a recorded 433A or 433C, the home remains personal property. Even then, these instruments, while they show the intent to convey title, do not actually transfer the title. That can only be done by following proper procedures and transferring the mobile home titles through the DMV (except in the very rare case where a title has been retired).

Effective Ideas for Bathroom Remodels

In this economy, many people are making the wise decision to improve their existing home as opposed to taking on the risk of another, larger mortgage.  One of the rooms in any home that provides an easy outlet for these improvements is the bathroom.  Remodels to this area of the house may seem simple, but there is nothing simple or easy when it comes to remodeling.  San Diego is a market with many options in this regard, but below you’ll find some basic ideas regarding San Diego bathroom remodels that could help you get started.

Plan from Start to Finish

Many people who have the idea to rework their bathrooms simply get started without thinking the entire process through to completion.  Simply put, this can lead to an endless phase of remodeling.  San Diego homes tend to be built with a specific plan, and this same level of planning should be done in regards to this bathroom project.  Working through a plan will help you keep your focus on the ultimate goal as opposed to getting bogged down in the details.

Shop and Price

Before you decide which products to purchase for your project, you need to take some time to shop and price the goods you’ll need for the remodeling.  San Diego offers a plethora of options, and you can save hundreds of dollars if not more if you find the right materials for the right price.

Look Around

It’s likely that your idea to get into the world of bathroom remodels came from a specific inspiration.  Perhaps you saw a bathroom that you really liked and would like to emulate the look and/or style.  However, if you simply think that this would be a good project to take on, spend some time looking around to find out what you think would work well within your bathroom and your home overall.

Seek the Vision of a Professional

Finally, you should take some time to speak to a professional who has experience with bathroom remodels.  This step can also help remove some of the stress that comes with the uncertainty of remodeling.  San Diego is a market that Chad of All Trades, Inc. has been serving for years, so contact the company today to schedule an initial consultation.  If nothing else, you’ll get some ideas and concepts you can use and you could wind up having your plans and ideas reinforced by someone who has helped countless people in the area successfully complete San Diego bathroom remodels.  Contact Chad of All Trades, Inc. today.

Chad Arendsen is a third generation general contractor in San Diego. Since 2000, Chad of All Trades, Inc. has been serving North San Diego in all facets of residential and commercial construction. We are All Trades. Visit them at: http://www.chadofalltrades.com/

Part II of a Three Part Series

In Series Number One, we reviewed the merits of the Good Faith Estimate and its value to the borrower for transparent disclosure of facts and figures.     In the Part Two, we need to address the “service” aspect of the Real Estate Settlement Procedures Act.

When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today’s market mortgage, servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute which affords you certain disclosures and strategies for problem resolution with your mortgage and/or escrow account.

Duty of Loan Servicer to Respond to Complaints. If you have questions or problems with the servicing of your loan, the servicer is required to respond to you. Write to your servicer and call it a “qualified written request under Section 6 of RESPA.” It should be a separate letter and not mailed with your payment. The mortgage servicer must                respond to you within 60 business days of receipt.

A Sample Complaint Letter would include the following because the specifics are important:
Attention Customer Service:

Subject: [Your loan number]
[Names on loan documents]
[Property and/or mailing address]

This is a “qualified written request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).

I am writing because:

• Describe the issue or the question you have and/or what action you believe the lender should take.
• Attach copies of any related written materials.
• Describe any conversations with customer service regarding the issue and to whom you spoke.
• Describe any previous steps you have taken or attempts to resolve the issue.
• List a day time telephone number in case a customer service representative wishes to contact you.
• I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.

Sincerely,

[Your name]

REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address.

And, it is very important that you continue to make the required mortgage and escrow payment until the request is resolved.

Loan Transferred to New Servicer. Your loan servicer is required to notify you in writing at least 15 days before the servicing of your loan is transferred to a new servicer. The notice must include the following information:

* The effective date of the transfer, the date your current servicer will stop accepting payments and the date the new servicer will begin accepting them.
* The name, address, and toll-free or collect call telephone number for the new servicer.
* Information that tells whether you can continue any optional insurance, such as mortgage life or disability insurance, and what action, if any, you must take to maintain coverage.
* A statement that the transfer of servicing does not affect any term or condition of your mortgage documents other than the terms directly related to the servicing of the loan.

Treatment of Payments During Transfer Period. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.

Escrow Account. RESPA does not require that you maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc. Nor does RESPA have any jurisdiction over the decision of the lender or servicer to require or terminate an escrow account. RESPA does, however, provide you with the following protections with regard to the escrow account:

• If your lender or mortgage servicer requires you to maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc., RESPA requires that the servicer pay such items by the dates due to avoid a penalty or late charge.
• RESPA sets limits on the maximum amount of money the servicer may require you to maintain and pay in the escrow account. (More information about escrow accounts, including how to calculate the maximum amount RESPA allows the lender to require in the escrow account.)

Multistate Home Lending www.multistatehomelending.com and The Manufactured Home Lending Source www.mh-lending.com are committed to full and complete disclosure. All of our loan officers are registered with the Nationwide Mortgage Licensing System and Registry (Registry), a database established by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the States. As part of this registration process, mortgage loan originators must furnish to the Registry background information and fingerprints for a background check. The S.A.F.E. Act generally prohibits employees of an agency-regulated institution from originating residential mortgage loans without first registering with the Registry.

To Cert or Not to Cert? Our Opinion—Not So Fast

I am a female manufactured home contractor specializing in manufactured home foundation repair. It’s not the most glamorous job in the world and mainly consists of crawling underneath the darkside of people’s homes, often in claustrophobic tight conditions and in poor air circulation environments. Some manufactured homes are set in a pit to give an attractive low profile curb appeal, much like a site built home. Others are installed above ground and some even on full basement. On the subset types, there’s not a lot of room for the configuration of the female form to navigate easily from one end of the home to the other. While trying to do the military crawl underneath, my bottom inevitably pops up and then when I try to balance out, my head often jerks up and whamm—straight into the I-beam. My male co-workers find this particularly funny and when they hear my yelps as my body parts bang and clang against metal, I hear uncontrollable laughter. Fortunately YouTube has yet to find me underneath the dank and dirty world that is the manufactured home contractor’s domain. Believe me, we see it all, spiders, snakes, rats, centipedes, scorpions, dead carcasses (cats, rats, bunnies, and yes even a coyotes) not to mention standing water, sewer leaks, falling insulation, splitting marriage lines, overextended screw jacks, shifting or compromised supports. I have yet to find any buried treasure but we frequently find several cases of empty beer cans which may be the reason many of the homes we work on seem to be set up off kilter right from the beginning. (more…)

Finding the right lender

Fair or unfair to manufactured home borrowers, most lenders view manufactured homes with derision. We’ve all heard the term —trailer trash—well that’s how most lenders continue to characterize the manufactured home loan. Without owning the land, the manufactured home is pigeon-holed into a high percentage rate personal property loan. Even when the home sits on real property, the stigma persists in the minds of lenders that a homeowner will pull up his 5th wheel, hitch up the home, pull up stakes, and disappear down the road in the middle of the night – leaving the investor, high and dry. Although the portrait being portrayed treads on the side of ridiculous, the real concern for the lender is not only dismissing the above stigma, but how a simple classification of titling can significantly alter an investor’s mentality from “trailer” to legitimate dwelling. (more…)

Most lenders view the manufactured home loan as a “nuisance” loan. No matter what kind of manufactured home you have (even if it has tile roof and drywall interior), you’re going to be lumped into the “trailer” category in the mind of the loan officer. This is just a “loser loan” for him. A lot of work, and not enough commission! Plus there are so many compliance hoops to jump through and the compliance checklist is often daunting to the novice. And for the typical lending office, very rarely do the support staff know what they are doing. The processors don’t even understand the vocabulary much less the fine details, appraisers sometimes submit their data on the wrong form and even underwriters often fail to manage the file properly. (more…)

Reverse Mortgages are becoming popular in America. The U.S. Department of Housing and Urban Development (HUD) created one of the first. HUD’s Reverse Mortgage is a federally-insured private loan, and it’s a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. You can receive free information about reverse mortgages by calling AARP at: 1-800-209-8085, toll-free. Since your home is probably your largest single investment, it’s smart to know more about reverse mortgages, and decide if one is right for you! (more…)

Have you been sticking your nose up at the manufactured home borrower? Like it or not, with the increasing popularity of the Reverse Mortgage loan product for the mature borrower, loan officers and processors are dealing with more and more manufactured homes in their portfolios. It makes sense when one realizes that seniors have chosen to congregate in the manufactured home park setting as a retirement oasis, offering the amenities of security, recreation and a sense of community. The concentration of an active senior population in a close-knit living atmosphere naturally lends itself well to word-of-mouth advertising for the Reverse Mortgage industry. And now with the recent passage of H.R. 3221 , the housing stimulus bill signed into law on by President Bush, you can count on the numbers of manufactured home loans increasing. (more…)

With the increasing popularity of the Reverse Mortgage loan product for those homeowners 62 and older, loan processors are dealing more and more with manufactured homes in their portfolios. Many seniors have chosen the manufactured home communities as a retirement refuge and the community and recreational atmosphere lend itself well to word-of-mouth referrals and the spreading the news about Reverse Mortgage benefits. However, the manufactured home loan presents a new set of criteria for the loan officer and loan processor as well as the borrower so be prepared ahead of time. (more…)

What’s Holding Up your Home May also be Holding up your Loan
Know Your Foundation!

Homeowners that live in manufactured homes often face confusion and frustration at the worst possible time —at the 11th hour when they go to buy/sell or refinance their home and the lender pops up with a final condition: an engineer’s certification of the manufactured home’s foundation. For many this becomes a crisis when the foundation fails to meet the HUD guidelines. To resolve the situation and proceed with the loan, the lender will then require an engineered upgrade, repair or a retrofit on the foundation in order to meet the HUD guidelines. (more…)