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I May Not Be Able to Finance That!

By Eric McGowan

Mortgage and Lending

November 11, 2008 05:14 AM

We all run into them---the dreaded unique property. This is One that Only One in a Million Loves and Will Ever Buy.

I basically ask some brief questions upon getting started with potential clients and figure out what may work best for them in their situation.

Signs that realtors and loan officers should beware of:

"It was once a bus.... we just put it up on pilings and it is home."

"I pulled it off the river, drained it out, and added a room."

"Yep, you can change the oil in the motor ..."

"It was once a single wide. We moved it onto our parents' land, and have added a bedroom and ..."

Unique properties are one thing; however, utilizing the equity in them can be quite a challenge.

Parts of an old barn or the stern of a ship add character. Whereas, the "oddity" that endears a property can be the very liability as well when trying to finance it or for an appraiser to find comparables for it. Should one ever want to finance these "unique" properties then the lender, if it is approved, would likely loan on the land--not the home.

Image of bus complements of flickr.com.

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Konnie Mac McCarthy

MacNificent Properties, LLC - Cobb Island, MD

Broker/Owner - VA & MD "Time To Get A Move On!"

Oh my God..you are funny....are these real properties in need of financing? You sure do have your work cut out for you..

Nov 11, 2008 09:19 AM

Danny Thornton

R & D Art - Knoxville, TN

WordPress Guru

Eric, over the years I have learned to run away fast when I hear "Unique".

Nov 11, 2008 02:50 PM

Eric McGowan

Moody, AL

Konnie: Thanks, I do have a bit of a warped sense of humor. I pulled the images off of emails and flickr. I have run into some "strange" properties and wondered to myself "how can these people even live like this?" As the "unusual" does present itself I decided what a way to bring humor to it.

Nov 12, 2008 12:48 AM

Danny, "I Try to Run" as fast as I can. But, we still get calls occassionally.

Nov 12, 2008 12:49 AM

Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

That is a classic Eric , I was beginning to feel sorry for myself. Thanks for the chuckle...

Nov 12, 2008 08:02 AM

Paul. You have to have a bit of humor in order to survive now. However, there are people that we run across.

Nov 12, 2008 08:17 AM

Chad Baird

Re/Max Spirit - Dayton, OH

I showed a property a few years ago that turned out being a mobile home that had been built around and expanded into a house. All the records said it was a mobile home but looking at the house, you never would have thought it. The neighbor finally confirmed the fact for us.

We all agreed though, it was an inpressive display of craftsmanship. It was an REO property though, so I never got the opportunity to ask the owner "what was you thinking".

Nov 12, 2008 09:25 AM

Chad: I can totally understand that. My great aunt and uncle were given two single wide mobile homes from a fellow church member about 25 years ago. They aligned them about 20 or so feet apart and then basically ripped them down and built a large home around what was left. They complemented the exterior with brick veneer, two car garage, and from what all would assume "it was 'normal' home." And, upon looking on the outside one would have never guessed. They took the value in what was given. However, from a lending standpoint this would never work. Getting a converted mobile home classified as "real property" is nearly impossible.

Nov 12, 2008 09:58 AM

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Eric McGowan

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