What doesn't kill you, not only makes you stronger, but wiser

Education & Training with REcampus Fully Accredited Florida ONLINE & Classroom Training in Destin, Pensacola Florida

A few years ago, one of my agents had a good friend contact her to buy a home.  She spent almost a month showing this couple house after house until finally they settled on a fairly new double wide on two acres of land that was listed on the MLS. 

The offer was accepted by the seller and the mortgage broker started the loan process for an FHA loan. Everything was on go.  The credit was good, the appraisal came back good, the inspections were good and the foundation and tie-downs all met FHA approval.  According to the lender, we were just waiting on the final approval from FHA to set a date for closing.  

Suddenly, it took a turn for the worse.  Somehow FHA discovered that the mobile home had been previously moved to the site from another location and FHA denied the loan. Even though the move was made within the same county, and there was no previous mortgage, it didn't matter.  Not only did this stipulation completely kill the deal, our buyers lost all the money they put out for the appraisal and the inspections. 

FHA would not make a loan on a mobile home that had been moved period.  They said it could only be made if the mobile home was on the same property that it was originally bought and set up from the manufacturer. 

Who knew?  You would think that the lender would have asked this question from the start before he ordered the appraisals and inspections.  After all, he should be familiar with FHA rules and guidelines.  Or, was this something the listing agent should have known and stated on the MLS? 

The buyers ended up losing about a thousand dollars with very hard feelings.  We truly felt bad for what happened and offered all we could to make things right. We even offered to find them another place and give up our commission to make up for their loss but the buyers were bruised and didn't want to go any further. What doesn't kill you not only makes you stronger, but wiser.

This post is an entry in the Active Rain Challenge: What Doesn't Kill You Makes You Stronger

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Rowlett Real Estate School

Captain Wayne Rowlett Real Estate School

For infomation on Rowlett Real Estate School and our classes in Panama City, Fort Walton, Pensacola and Destin, visit our website at www.rowlettrealestateschool.com .  Or give Captain Wayne a call at 850-547-1333

Rowlett Real Estate School is a full service Florida Real Estate School offering classroom training in Panama Ctiy Beach Florida and Destin Florida, Fort Walton Beach and Pensacola.  We offer a full line up of courses online and in classroom for all your Sales Associate and Broker real estate license requirements.
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
Wayne, that is interesting and I didn't know about this neither. And this is coming in handy, because I have a listing with a similar circumstance (modular home v. mobile). I'll definitely check this out. Thanks!
Sep 14, 2012 10:01 AM #1
Melissa Marro
Keller Williams First Coast Realty - The Marro Team - Orange Park, FL
Jacksonville Real Estate and Home Staging

Wow. I've never heard of this either. I'm sure that had to be extremely frustrating to the buyers. Not that $1000 isn't a large amount of money for anyone, but chances are if they are buying a doublewide, that is particularly true. 

It is disappointing that the lender didn't do their job to understand the situation before they had the customers spend the money. 

Sep 15, 2012 02:04 AM #2
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I had no idea either. I never work with mobile homes, though, this is a unique type of transaction.

Sep 15, 2012 02:07 AM #3
Rachell Lara & A List Properties
eXp Realty / 619.316.7445 - San Diego, CA
A List Properties - San Diego Neighborhood Experts

Wow, not only did that make you wiser, but all of us since you shared it. I wouldn't have known either.

Sep 16, 2012 09:56 AM #4
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

I had not heard of this as well.  Perhaps they could have changed the financing from FHA to conventional would that have made a difference?  I sold a manufactured home with conventional financing and all went well, but it was not a mobile home in a park or anywhere else, and the land went with the manufactured home.  I don't know if that was what your transaction was but how sad for the buyers and your agent.

Sep 18, 2012 02:23 AM #5
Patricia Feager
Selling Homes Changing Lives

I hadn't heard about this before; however, I have had FHA guidelines come back to bite buyers too - AFTER putting out a lot of money and time for other issues. You wound have thought the lender knew this beforehand. I can't blame the listing agent or the seller; they probably didn't know either. The FHA guidelines shoudl be layed out beforehand - or do they make the rules up as they go along? That is the question!

Sep 21, 2012 06:09 PM #6
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