I am not sure how many of you are familiar with mobile home investing, but did you know that you can short sale a mobile home on a rented lot in a mobile home park. Foreclosures occur on these just like any other asset. People get into financial trouble and can not pay. Unfortunately, most of the time, the borrower is upside down in the property. They owe way more than the property is worth. This occurs in any type of market, because it is considered personal property, thus it depreciates at a fast rate. One thing to keep in mind, despite popular opinion they do not keep on depreciating down to nothing. They will sustain their value based on the location, condition, and demand for the mobile home. Therefore, you could find a distressed mobile home borrower, negotiate with the lender for a short sale, and pick up a great property for a great price.
Why is this a good option? In a lot of areas, the foreclosures on site built homes have driven buyers to mobile homes or at least less expensive living options. The demand has become a lot greater in some areas for these types of properties and most average buyers and real estate agents would not think of doing a short sale on a mobile home on their own. I would say that is an untapped niche!!!!
Mobile home lenders are very motivated to negotiate, becasue they have to pay lot rent to the mobile home park for each month that mobile home sits there with out a new buyer. This burden rests on the shoulders of the lender. Just think, they lost money on the loan, they might have to pay for a foreclosure or eviction and now if they get the property back they have to pay lot rent. I'd say they are motivated to sell. Private and conventional lenders will be in this situation from time to time. The best source to contact first is the park manager, they will know what is going on with certain mobile homes in their parks. Happy Hunting!!!
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