Real Estate Settlement Procedures Act (Respa): Know Your Loan Ingredients!

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 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.

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March 1, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing Curator Title Service, Expert Witness, Industry Expert, On The Level, The Manufactured Home Foundation and the Engineer’s Certification

Are You Looking For Mobile or Manufactured Home Experts?

With On The Level You Can Have A Few For The Price of One.

John (CEO) & Janis Arendsen (Lender & Realtor Relations) Principals of ON THE LEVEL

Combined we have over 50 years of experience in all facets of the Manufactured Home industry. In fact We have been actively engaged as a Consultants, Expert Witnesses, Industry Expert sand Troubleshooters at large since 1986 and have worked with myriad Law Firms, Mobile and Manufactured Home Parks and Developments, Condominium Conversions, Park Owners and Managers, Manufactured Home Dealers, Contractors, Manufacturers and Developers during this time.

Weather it’s inspecting, repairing, replacing or retrofitting the under-structure of a Manufactured Home (above) or installing a brand new Manufactured Home Foundation system like the Tuff-One by Abesco Manufactured Home Products.

Scott Arendsen, President of On The Level in charge of Field Operations and Inspections

My lovely wife, Janis, of 35 years specializes in Lender and Realtor Relations and Curative Title Solutions. If you need an Engineered Certification, Affidavit of Affixture, 433A documentation (California only), a Foundation Inspection, Installation, Retrofit or Repair or you are having a problem clearing title on a manufactured home you are trying to sell or purchase she is your go to person.

As experienced and seasoned experts in the Manufactured Home Industry we have come to realize and appreciate the astronomical costs and wasted time involved in defending and/or servicing or representing our clients and/or their company in time consuming, agonizing and messy litigation and tedium in public offices i.e county recorders, planning departments, permit departments, et.al.. Hence, we would like to extend our services to you in an effort to minimize if not pre-empt many needless often frivolous claims, litigation’s and bureaucratic red tape.

Or perhaps you may want to remove an old circa 60’s or 70’s Trailer and

install a new state-of-the-art Manufactured Home in a Park or on private land.

We inspect every project and/or job-site and perform a thorough scope which includes any and all necessary photographs, video recording, field inspection of any type, destructive and de-constructive inspection, and forensic evaluation. We then prepare a comprehensive Power Point presentation that concisely delineates every aspect and line item in question. Our reports and presentations be they in a corporate boardroom, law office, courtroom or public service counter are very informative and convincing.

Or then again you may have something far more ambitious and aggressive in mind.

Whatever you are planning to do with Manufactured, Modular or Pre-Fab technology

please consider us your go to experts.

Today’s Modern Modular Home Technology

Our goal is to keep our clients out of the courtroom and out of building, planning and permit processing departments by offering investigatory and forensic services designed to minimize the often over dramatized and inflated law suits, dispel fallacious, trumped up and bogus claims and cut through all the bureaucratic red tape that has ended up costing manufacturers, dealers, contractors, RE & Mortgage Brokers, agents and especially homeowners be they buyer or sellers millions of dollars andpainful time and tedium.

Feel free to pass this information along to your legal counsel, manufacturing, technical, service and field operations personnel, RE agents and loan originators and clients for their perusal. We are available anytime and offer our services in every state except Hawaii, Alaska and Florida. In most Realtor and Lender related projects we can offer 24 to 48 hour turnaround. Legal and Title related cases and projects naturally take much more time as they require extensive discovery, research and evaluation. Feel free to call our toll free number for a fee and rate schedule (800) 909-1110 or email us at onthelevel@cox.net.

ON THE LEVEL General Contractors

CREST HOMES Manufactured Home Dealer and Developer

February 23, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing Curator Title Service, Expert Witness, Industry Expert, On The Level, The Manufactured Home Foundation and the Engineer’s Certification

ON THE LEVEL Is A One Stop Shop For Lenders, Realtors & Homeowners

Are you involved In A Manufactured Home Loan Or Real Estate Transaction?

Welcome to ON THE LEVEL Contractors. Please feel welcome and encouraged to to call us at 800 909-1110 or by all means log onto our website anytime at www.onthelevelcontractors.com On The Level is a one stop shop for lenders Realtors and homeowners that are involved in a manufactured home loan or real estate transaction. Whether you need an engineer’s certification on a foundation or a foundation repair, we have a national network of service providers and licensed contractors to provide turn-key solutions.For the loan officer, processor or underwriter we can provide support with your manufactured home transactions by facilitating the engineer’s certifications of the foundation. The engineer’s certification specifies that the foundation complies with the HUD Permanent Foundation Guide for Manufactured Homes (PFGMH – HUD 7584), a requirement for all FHA-insured loans which include Home Equity Conversion Loans (Reverse Mortgage) Loans. If the foundation does not comply for any reason, we can also expedite the requisite repair to meet the engineer’s repair or retrofit specifications. Generally all costs associated with certifications or repairs can be paid out of loan closing.

For the homeowner interested in selling his/her home or the borrower looking for a loan, the engineer’s certification is frequently the final sales or loan condition. If the foundation needs additional structural supports in order to meet enhanced wind, seismic, roof or snow load requirements, we can work with your realtor or lender to make sure that all requirements are met for a seamless transaction and the invoices are presented in the closing.

We also have experience as consultants, expert witnesses and troubleshooters in all facets of the manufactured homeindustry. We are accredited by the Better Business Bureau as well as members of a number of manufactured home professional organizations.

For an Engineer’s Certification Inspection, click here or call 800-900-1110.

For Foundation Retrofits or Repairs, click here or call 800-900-1110.

Click here for Manufactured Home Lenders and Realtors

A manufactured home must be a HUD home, which means it must have been manufactured after June 15, 1976. If there are metal plates at the rear of the home that begin with a three Alpha letters like CAL, ARZ, ORE, that’s usually a good sign.

1. If the HUD label is missing, usually a label verification letter from the Institute for Building Technology and Safety (IBTS) which will give the provenance of the home will suffice.

2. The Manufactured homes and FHA Insured Loans is classified and taxed as real estate. A long term lease may also be acceptable in certain instances.

3. The axles and tongues must be removed.

4. The manufactured home must have an adequate perimeter enclosure with appropriate ventilation.

5. Must have a floor area of not less than 400 square feet

6. Built and remains on a permanent chassis

7. The finished grade elevation beneath the manufactured home shall be at or above the 100 year return frequency flood elevation.

8. The home must sit on a permanent foundation.

All foundation systems, new and existing, must meet the guidelines published in the HUD Permanent Foundations Guide for Manufactured Housing, (HUD-7584), dated September 1996. A certification attesting to compliance with this handbook must be obtained from a licensed professional engineer and included in the insuring file.

This last requirement can throw the loan processor into a quandary if they have never expedited a manufactured home transaction previously because this request will often show up at the 11th hour of loan closing.

Nine times out of ten the appraisal report will show that the home is on a foundation system so the processor or loan officer won’t have alarm bells off of worry going off when they receive this condition. Unfortunately, the appraiser often simply determines “permanence” strictly on the basis that the tires and axles have been removed or some other vague set of standards, not on the basis of the foundation attachment.

The reason for this requirement is to establish a national standard of consistency amidst inconsistent state installation standards. While manufactured homes have standardized preemptive structural, plumbing, and electrical standards that need to be met before leaving the factory, installation standards vary from county to county, state to state.

Additionally, manufactured homes are unique in that they can either be titled either as personal property (chattel) or real property. In some states the distinction between personal and real property is determined by the type of foundation and underpinnings that support the home.

Since the individual jurisdictional requirements vary significantly, the Engineer Certification Letter helps to provide a standard for excellence. This is generally an underwriting requirement for all FHA insured loans, which also include Reverse Mortgages.

If an existing home is already on a foundation, an engineer can provide a certification attesting to the fact that the home meets the guidelines. If it does not meet the HUD guidelines, there are a variety of proprietary or approved engineered foundation Retrofitting systems in combination with the existing structural components.

As in any industry, one size does not fit all in the engineering landscape and engineers that specialize in the manufactured home industry and the HUD inspection specifications are even rarer still. Because there are a vast array of proprietary products that have been introduced into the national marketplace, knowledge about these systems is also an additional benefit since these have all been pre-engineered and stamped delineating all of the system specifications.

This also means if the foundation does not meet the FHA-insured criteria for a permanent foundation, the engineer does not need to re-invent the wheel with a repair recommendation—there are a plethora of products available for the retrofit contractor.

Therefore finding the right combination of an engineer and contracting team that understands the FHA lending process so the engineering certification does not impair the loan lock timeline, is familiar with the availability of proprietary systems that can resolve the repair issues if they are necessary and are able to liaison with both lender and borrower to provide turn-key solutions.

On The Level http://www.onthelevelcontractors.com and Pacific Consulting Engineers collectively team to comprehensively resolve FHA-insured loan certification and foundation repair issues for the manufactured home borrower and lender.

TESTIMONIALS

REFERRAL LETTERS

Click on these links to download letters of referral from companies that have worked with On The Level (letters are in PDF format).

Multi-State Home Lending

America One Mortgage Group

U.S. Bank

Michael Clarke

CLIENT COMMENTS

“Our manufactured home owners benefit from the ease of handling their sometime complex needs and with you working in their best interests in a smooth and professional manner, with honesty and integrity at the forefront.”

James Marietti, Multi-State Home Lending
Janis,

“Thank-You for all your help. You made it all possible. I will definitely refer you. Please send me some business cards. Your company is awesome. ”

Marsha Dixon
Homeowner, Page AZ

“You are by far the best at this cert business that there is out there!!!”

Eliut Gonzalez
Pacific Coast Mortgage

“As a Realtor, I have used the services of On The Level several times to level manufactured homes for my buyer’s and my seller’s. In my opinion, On The Level’s services are far and above those of other leveling companies. They are very professional, timely and stand behind their services. If one ever needs a leveling company, I would highly recommend Janis and her company.”

Barbara Whisenant
You guys are awesome! Thank you very much! I don’t know who else anyone has been using here for this service but I will recommend you to everyone!

Again, THANK YOU, THANK YOU, THANK YOU!!!!!

–Wil Fortenberry, Paramount Equity
–Financial Specialist

Janis,

Thank you so much. I have to tell you, you are awesome to work with. I thought this deal was dead and I know that a lot of mortgage brokers out here feel like they don?t know where to turn to on manu deals. I will definitely spread the word about you guys!

–Amy Brill Janis,

You and your company are truly the best in the business and I will always recommend you as the preferred contractor for all future jobs. Thanks again and have a great day.

–Darel Handley
–Handley Homes

We were so impressed with how professional and nice “On the Level” was. That’s how a business should operate! They even fixed the steps that the inspector messed up! I can’t tell you how happy we are that we found them to do the foundation.

–Hope Nichols, Homeowner

Janis,

Thank you so much for all our hard work! This file would not have closed if it wasn’t for you. You were awesome. We need more people out there like you.

–Mickey Bowlin, West Coast Escrow Janis,

What can I say but, ‘wow’ thank you for getting our inspection handled. You have helped make our dream come true.

–JD and Betty Biros
–Olancha, CA ”

We officially closed our loan last week. Chad and I just wanted to thank you for being so awesome to work with as we got the retro-fit issues worked out. We really appreciate it!”

Thanks again!

Sincerely,
Rana Watterson

“Thanks for having such great knowledge on this when no one else did. You were awesome!”

All the best

Jim Siebert
Vitek Mortgage Group

“Thank you. You saved this one for me!”

Michelle Camacho
Foothill Home Mortgage

February 22, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing Curator Title Service, Expert Witness, On The Level, The Manufactured Home Foundation and the Engineer’s Certification, Troubleshooter at large

The Manufactured Home Foundation and the Engineer’s Certification

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

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.

Having worked in the business for twenty some years, we have strived to maintain our business model as closely associated with the name of our company, On The Level, as possible and have tried to avoid the trampy style of some of our competition who frighten the mobilehome senior market with scare tactics,convincing widows to buy overpriced “foundation systems”,”earthquake bracing”, locktops, or “marriage rods et. al. In most cases, these products were unnecessary or unpermitted and a waste of homeowner’s money.

WALLA! Enter the Lenders and RE Industry: And yet necessary upgrades for manufactured home foundations suddenly made an appearance when the lending market (specifically FHA and VA Loans) imposed foundation standards for permanent attachment in order to meet loan criteria. Without an engineer’s certification proving that the manufactured home’s foundation met FHA-insured standards (THE PERMANENT FOUNDATION GUIDE FOR MANUFACTURED HOMES, HUD 1996) , an FHA or VA loan could not move forward. The good news is that there are dozens of state-certified alternate and pre-fabricated systems available in the marketplace so that a home can have foundation repairs without having to renovate the entire understructure.

While the foundation standard is defined in the HUD Permanent Foundation Handbook, the problem is that individual states have divergent installation, titling, and real property provisions so each home must be evaluated on a case-by-case basis. But as a company, On The Level does not stop at the evaluation of just the foundation. It is our opinion that a foundation certification is NOT a stand-alone document.

Proving that the foundation is compliant should NOT be the first step on the long laundry list of conditions. IT SHOULD BE THE LAST CONDITION! Let me explain, in many cases, we have evaluated the foundation and we know it can certify or it will certify with a retrofit but we refuse to move forward with the actual letter. Why? Our competition takes the attitude that they are only being hired to assess the foundation so that’s what they do: assess the foundation in a vacumn irrespective of other data, then they write a pass or fail certification, and take the money and run.

So what if a $3000 retrofit could potentially kill the loan? Who cares if there is evidence that the home was moved from another location? Who cares if the home is located in a flood plain? Who cares if the home doesn’t have HUD tags? That’s not the engineer’s or retrofitter’s job, right? The engineer only needs to write a determination of the foundation itself. End of story.

We disagree. My point is that this is state-by-state tricky wicket. In most cases, I’ll get a demand from an enthusiastic loan officer, “I just need the cert”. When I say, “Not so fast—our research shows issues in other areas”, I think most of them think we are trying to drag our feet. Not true! It is our policy as a company never to charge for a failed foundation inspection report—we only charge the borrower or lender once a foundation report certifies that the foundation meets the PERMANENT FOUNDATION GUIDE FOR MANUFACTURED HOMES, HUD 1996.

We provide a one-stop shop for borrowers, lenders, processors to get nationwide engineer’s certifications quickly and accurately. No charges for failed reports EVER!!!! www.onthelevelcontractors.com

And if you don’t have a lender, a manufactured home specialist: www.mhlending.com

February 22, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing Engineer's Certification, manufactured home, mobile homes, On The Level, The Manufactured Home Foundation and the Engineer’s Certification

WHEN THE CUBIC FOOT vs THE SQUARE FOOT REALLY COUNTS: BIG PLACES ON LITTLE SPACES

In California the closer you get to the beach the smaller the lots seem to get leaving folks with limited choices in finding suitable let alone affordable building and ownership opportunities. One very popular trend taking place today is the transformation of many boutique mobilehome and trailer park communities that dot the landscape along the California Coastline. We selected the Encinitas and Leucadia area of North San Diego County, aka North County, because, first and foremost we live in San Diego (Americas Finest City), and secondly because of its old fashioned traditional funkiness, fabulous surf breaks and fantastically friendly beach people; a true breed unto themselves.

THE WEE MOBILEHOME PARK, LEUCADIA, CA, is a 9 lot very peaceful, tiny and intimate Mobilehome Community with a private dead-end roadway: Above left sit the original small singlewide trailers, mobilehomes and even a park modle (RV under 400sf) that were installed from the 50’s to the 80’s. Above right shows the transformation of 4 out of the 9 spaces. The structure in the front left was once an old and delapitated laundry and shower/dressing room area which was demolished and transformed into a charming Cape Cod stylr site-built 850sf 2 story beach cottage. In the left rear an old 1969 singlewide 10×50 foot trailer was removed and a new 20×48 foot 2bdm, 2bth manufactured home was installed as a second home for a young family. On the right two 14×36 foot singlewide Silvercrest Manufactured Homes with 17×36 foot site-built cabanas (980sf) replaced 2 circa 60’s and 70’s singlewide trailers. This park will be on a 30yr lease while it’s going through the process of being converted into a condominium resident-owned community.

Many if not most of these charming little settings are slowly going through a transformation. As an avid lifetime surfer, general contractor, manufactured home dealer, developer Realtor and father of 5 beach crazy kids and 9 up and coming beach crazy Grand kids we decided to create a niche that would cater to those folks seeking an affordable solution to a coastal lifestyle be it full time residency or a vacation home.

BEFORE UPPER LEFT: WE REMOVED TWO 1959 10X36 (360sf) SINGLEWIDE 1bdm 1bth TRAILERS on TWO 30X40 (1200sf) LOTS CONTIGUEOUS TO ONE ANOTHER. UPPER RIGHT: SITE PREPERATION WHICH CONSISTED OF SOME LIGHT BACKHOE EXCAVATION AND GRADING FOR THE INSTALLATION OF ALL NEW UNDERGROUND UTILITIES AND NECESSARY FALL (SLOPE) FOR PROPER DRAINAGE AWAY FROM THE NEW HOMES.

In 2001 we began combing the North San Diego Beach communities for little trailer parks that had old trailers or mobilehomes for sale at a reasonable cost (under $50k). Bear in mind that the $50k doesn’t buy the land. It just gives you the privilege of leasing the space. In this case it’s a 30 year lease with option to purchase the lot once the park owner converts the park to a CONDO-CONVERSION whence we have the option to purchase the land for about $250k per lot.

With the cost to purchase the existing trailer at $50k we then spent approximately $100k to prep the site by dismantling and removing the existing trailer, clearing and cleaning, new underground utilities, and purchasing and installing the singlewide Silvercrest Manufactured Home. (Photo Lower Left)

AFTER LEFT: DELIVERY AND INSTALLATION OF A 14X36 (504sf) 1bdm 1bth SINGLEWIDE SILVERCREST MANUFACTURED HOME. RIGHT: A SITE BUILT WOOD FRAMED 17X36 (476 SF) 2bdm 1bth CABANA WAS BUILT OVER THE TOP FOR A TOTAL OF 980sf UNDER ROOF.

NOTE: THESE STEEL FRAMED CABANAS CAN BE USED IN A VARIETY OF WAYS I.E. OVER AN EXISTING STRUCTURE THAT YOU DON’T WNAT TO DEMO OR YOU CAN USE THE BOTTOM FOR A GARAGE, WORKSHOP,BOAT OR RV STORAGE AND HAVE A LITTL GUEST COTTAGE ON TOP. IN FACT WE PLAN TO DO JUST THAT ON THE PROPERTY OF OUR PRIMARY RESIDENCE SOON.

Next we fabricated and constructed an engineered tubular steel super-structure framework which was used to support the site-built wood-framed cabana for the second story at a cost of $150k (Photo Upper Right). The total development cost came to approximately $300k ($306/sf). Add $250k to purchase the dirt and we’ll have a total investment of $550k or $561/sf. A comparable price for a 1000sf 3&2 home ½ block from the beach averages $1000/sf.

However, if your one of the lucky ones fortunate enough to own a home on the bluff over-looking the ocean you’re starting at $2000/sf for a scraper. Some homes on the bluff have been priced as high as $8,000,000. The 92024 zip code is one of the priciest areas in the County thereby making it one of the most expensive areas in the Country. The bottom line is this becomes a very solid investment. We were getting offers North of $650k during construction. Even if our only choice was to rent or lease a space it would still be a good deal if you were planing to buy/build and hold. This approach becomes a very viable and affordable way to own your share of the beautiful Blue Pacific. Even at $550k it’s still a good deal comparatively speaking. Janis and I have lived along the California Coast from Newport Beach to San Diego for over 5 decades and have lived through 5 significant recessions and oil embargos and have yet to see beach property take a much of a hit if any. Like they say their just not making anymore of it.

TOP: THE UPSTAIRS BALCONY (8X14) HAS BEEN PRE-PLUMBED FOR AN OUTDOOR KITCHEN AND CAN BE EASILY ENCLOSED WITH SHUTTERS AND/OR WINDOWS TO PROTECT AGAINST INCLEMENT WEATHER. MIDDLE: THERE IS A 10X12 DECK BELOW WITH AN OUTDOOR BAR-B-Q AND UPSTAIRS IS AN 5X10 FOOT SUNDECK LOCATED JUST OUTSIDE THE MASTER SUITE. WE OFTEN USE THIS AS A SPECIAL LITTLE OUTDOOR DINING AND/OR SUNBATHING AREA. BOTTOM: PARKING IS A PREMIUM IN MOST BEACH TOWNS. THIS DRIVEWAY HAS PLENTY OF ROOM FOR A FULL SIZED CAR (OBVIOUSLY NOT THE MINI) AND AN OUTDOOR PATIO WITH TWO 4 PLACE PATIO DINING TABLES WITH UMBRELLAS. THE FIRE RING IS A MUST HAVE AT THE BEACH FOR ROASTING WIENIES AND MARSHMALLOWS FOR THE SM ORES. WE’VE HAD AS MANY AS 30 GUESTS FIT COMFORTABLY ON THIS SMALL SITE.

UPPER LEFT: THE UPSTAIRS MASTER SUITE HAS AN ENTERTAINMENT CENTER WITH INTERNET, CABLE, A 46 INCH FLAT SCREEN TV AND DVD. MIDDLE: WINE BAR NOOK WITH GLASS SHELVES TO THE RIGHT FOR WINE AND COCKTAIL FINERY. RIGHT: OUTDOOR PRIVATE DECK ADJACENT THE MASTER SUITE.

DOWNSTAIRS: UPPER LEFT IS THE KITCHEN AND DINING AREA WHICH CAN COMFORTABLY ACCOMMODATE FOUR FOR A SIT DOWN DINNER OR UP TO 8 FOR A STAND-UP GATHER AROUND THE WINE-TASTING TABLE EVENT. THE UPPER MIDDLE IS THE REAR DOWNSTAIRS DEN & OFFICE WITH A SINGLE SOFA BED. UPPER RIGHT PHOTO: LIVING ROOM WITH CONVERTIBLE QUEEN SOFA. THE FLOORING THROUGHOUT IS OLD STYLE NEW ENGLAND HICKORY THAT WE PURCHASED IN MAINE AND HAD SHIPPED TO CALIFORNIA. WE EVEN USED OLD STEEL SPIKES INSTEAD OF SCREWS TO HOLD THE FLOORS DOWN JUST TO ADD SOME ORIGINALITY AND CHARACTER.

When you add an additional 200+sf for outside decking and enclosed balcony to the interior 980sf it yields aN 1180sf CUBE. Not bad for a 1200sf lot and we still end up with a 15×20 foot driveway and patio for outdoor activities, which is most of the time, when we’re not down on the beach. Even though it sounds like we’re smothering the lot with a structure the overall footprint is less than 800sf. The Housing and Community Development Department (HCD) for the state of California, who regulates RV, Mobile and Manufactured Home Parks, Developments and Communities requires that the structure only be built to within 75% of the total lot size. As you can see by doing some simple math we managed to stay within those parameters.

The really good news is that in California most homes that are this close to the ocean do not, as a rule, lose their value even in the tumultuous market we are presently experiencing. Our little cottage is only 310 feet from the ocean. We know because we had to take a calculated topographical measurement to determine whether or not we would be dealing with the California Coastal Commission which would have been a huge obstacle to contend with. Whew…we made it by 10 feet. Beacons, our local surf break is less than a five minute walk unless we use our rear emergency pedestrian exit whence it only takes a couple of minutes. If your running with your surfboard in hand to catch a few waves you can actually be in the water within 60 to 90 seconds.

UPPER LEFT: MY SON’S 26TH B-DAY ON THE DRIVEWAY/PATIO UPPER RIGHT: MY OTHER SON ON A GOOD DAY AT BEACONS.

For more good news the steel framework that was constructed to accomodate the 2nd story cabanas for this project can also be used for myriad applications i.e. 2nd story over an existing structure that you don’t want to demo or you can just build it with nothing under it thereby allowing you to use it as a garage, workshop, boat & RV storage, etc. We plan to build a similar structure on the property of our primary residence for added enclosed vehicle storage and a little guest cottage.

Overall there are endless opportunities with Manufactured Housing especially the way they are built today. In the old days (circa 50’s to late 70’s) they were built like flimsy travel trailers with aluminum siding and 1/4 inch interior paneling over a 2×3 exterior frame wall system. In fact we used to call them “Wobbly Boxes” when I worked in the Golden West factory in my college days because of the way they would sway going down the freeway and all the remedial work that was required to square and rack them back in line once delivered to the site. Now days however, they are built according to the HUD code which is tantamount to a conventional site-built home. You can spec in just about anything you can imagine i.e. 2×6 exterior walls, drywall, stucco, wood and even Hardy Board (fibrous Cement combination), tile roofs, etc. As for interior complements? The sky is the limit. You may order the home without any appliances, floor and wall coverings, counter tops, misc. fixtures, etc and purchase your own. However, they must all be installed in order to obtain a Certificate of Occupancy.

In closing I would like to invite anyone who would like more information about the Manufactured Home Industry to feel free to email or call anytime, 800 909-1110 or 760-419-3635 Cell with questions, concerns, thoughts or suggestions. Consider this your AR open forum for creative Manufactured Home development. By all means feel free to share this blog with your family, friends, neighbors and clients.

NOTE: Janis and I have enjoyed our little home away from home for several years now and have never rented it because it seemed as though we were always there. In fact our gardener at our primary residence told me that our home was missing us and we needed to spend more time there. Well, he’s going to get his wish. On July 22nd I will be having a bi-lateral knee replacement (both knees for those non-medically astute like me). Hence, Janis and I have decided that since I won’t be going up and down any stairs, surfing riding my beach cruiser or walking the sandy beaches with her for several months we might consider renting it out so others might enjoy it as much as we have. So we would like to exend an invitation to our AR friends and associates to visit “Casita de Aire y Sol” (Home of Air N Sun) should you want to consider vacationing out our way this year. I will be taking and uploading some more photos of the area and beaches and see if I can even capture one of our magnificent sunsets.

I’M KINDA FUDGING HERE. THIS IS REALLY HAWAII UNTIL I TAKE ONE OF LEUCADIA. BELIEVE IT OR NOT OUR SUNSETS ARE AS MUCH IF NOT MORE BEAUTIFUL.

ALOHA!

February 15, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing On The Level, The Manufactured Home Foundation and the Engineer’s Certification

Anyone In The AR Community Want To Own A Tiny Piece of The North San Diego Beach Community?

Well, there comes a time and a place for all good things to end. I’ve owned a cute little 14×36, 504sf one bedroom, one bath Manufactured Home in a very charming little Beach community known as Leucadia for the past several years. One of my daughters lived there from the time we put it in until she graduated from college and started her Interior Design business. As her business began to flourish she moved into the Cedros design district of Solona Beach which is zoned residential/commercial. Hence I have lost my best ever resident renter.

Having tried to be a landlord for the past couple of years I came to realize that at this station of my life it’s not exactly my calling. Hence I have decided to sell this charming little one bedroom one bathroom almost new 2002 Skyline beach charmer within walking distance to some of the greatest surfing beaches on the planet let alone myriad resturants, cafe’s coffee shops, boutiques and more art studios and yoga parlors than you would have time to count.

Add to that a bus stop within a hundred foot steps from your back door that can take you anywhere in San Diego in under an hour or connect you to the Amtrack and Coaster rail service in ten minutes, the Palomar Airport in fifteen minutes or the San Diego International Airport in less than fourty five minutes. If you are driving your own vehicle there’s ample parking for two plus vehicles.

It’s beautifully landscaped with lighting and automatic sprinklers and is situated on the quietest corner lot in the park with plenty of room to expand. The interior is clean and has wall to wall Super Satillo sealed pavers for low maintenance and no problems with sand fleas. You just can’t beat this little cozy beach retreat. The monthly rent is only $800 and there’s been talk that the park will one day be available for purchase by the residents.

We are only aking $69,500 and will consider financing it with at least a 25% down payment at 6% interest for 15 years OAC. If you like the beach and especially if you’re a “Zony” from Arizona, a “Snowbird” from the Pacific Northwest or Canada or a horse racing buff it’s the perfect place for you and your significant other. I haven’t tried to market it yet but I thought I’d throw it out to my AR buddies for starters. I would love to see it end up in caring hands with someone who appreciates all that the area has to offer. Comes complete with all appliances.

You won’t find a place this nice that you can own this close to any beach in North San Diego.

January 17, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing engineered certificaions, foundation inspection, On The Level, retrofit, The Manufactured Home Foundation and the Engineer’s Certification

Are You A Get Down and Getter Done Entrepreneur Or Just Another Me To RE Agent Waiting For Things To Happen?

Well, If You’re Tired of Waiting Around For Things To Happen Check Out What Just Might Happen In The Next RE Boom.

Tens of thousands perhaps hundreds of thousands of old Trailers and Mobile Homes will be removed from “Resident Owned” Mobile Home Parks in the next few years and brand new Manufactured Homes will be installed turning these once blighted ole “Trailer Parks”nto gentrified upwardly mobile “Manufactured Home Communities”

Before After

Above Left: Old Circa 50’s & 60’s 500sf 1+1 single wide trailers with asphalt driveway in aging and dilapidated trailer park. Right: Old trailers were removed and new 960sf 1/2 Manufactured home 1/2 site built second story results in 3 bdrm 2 bth home. Concrete driveway replaces old asphalt driveway. Thus far half of the homes in this development have been removed and replaced with new HUD approved homes. This park is currently going through the Condo conversion process. Hence, once completed it will be possible for these resident homeowners to obtain a land/home fully amortized 30yr loan.

This could be one of the sparks that ignites the next RE explosion and who would ever believe that it just might happen with “Manufactured Housing”?

Above Photos: Old trailers are demo’d and removed. In most cases you could just hook the old trailer up to a totter (transport truck) and haul it out on its own frame and running gear. However, in many instances the chassis and running gear are no longer road worthy and it becomes necessary to break them down to the ground on site, place them in a dumpster and haul them away.

FHA Financing Is The Only Widely Available Source For Forward &;; Reverse Mortgages For Affordable Single Family Manufactured Homes. In 2009 the marketplace for FHA loans for manufactured homes was significantly expanded when HUD changed the rules to allow FHA financing for home-owners residing in Condominium Developments. Increasing numbers of home owners, including senior’s that are eligible for reverse mortgages, are seeking affordable manufactured homes.

But in the current economy financing the purchase of a manufactured home is virtually impossible without FHA. Compounding the problem, PRE-HUD manufactured homes (homes built prior to June 15, 1976) are not eligible for FHA mortgages. Manufactured home owners trying to sell, seniors trying to secure reverse mortgages and buyers trying to purchase manufactured homes are all locked out when a PRE-HUD home is involved.

The only solution is to replace the ineligible home with a new HUD compliant Manufactured Home (homes built from June 16, 1976 to date) and obtain permanent FHA financing for a forward or reverse mortgage when the installation is complete.

A 60 to 120 day bridge loan will enable a pre-qualified purchaser or homeowner to replace an old unit and then obtain a permanent FHA mortgage. We are happy to announce that as of February 1^st of this year GM Mortgage &; Realty INC. can now provide bridge loans tied to permanent FHA financing for “QUALIFIED” owners of manufactured homes. GM Mortgage &; Realty INC has created this bridge loan funding program in response to an ever increasing need for temporary or interim financing in the expanding affordable manufactured housing sector.

A market and economic need exists to replace thousands of older manufactured homes (above). Financing the replacement of these homes is difficult under current conditions. While the opportunity for homeowners to secure permanent financing in the form of FHA backed mortgages is readily available, they will be unable to do so without a source of initial cash in the form of Bridge or Interim Financing.

The State of California estimates that in excess of 661,000 families reside in manufactured homes. According to a 2005 survey of manufactured home owners throughout the U.S. conducted by Foremost Insurance Group (the largest insurer of manufactured homes in the U.S.), 57% of all manufactured homes rest on privatly owned land (fee simple) and the balance are on rented land. Approximately 1.23 million older manufactured homes in the U.S. qualify for replacement and subsequent FHA financing and 81,000 of these homes are in California.

As the Baby Boomer Generation and longevity expand the need for affordable housing in the retirement housing industry experts anticipate that the demand for manufactured housing will expand as a very viable alternative. Baby Boomers want and need single story housing. However, financing stands in the way of this becoming a fully available alternative.

The Federal Housing Administration (FHA) has a history of securing mortgages for manufactured housing and is currently the only widely available source of affordable mortgage guarantees for owners and buyers of manufactured homes. FHA is an agency within the Department of Housing and Urban Development (HUD). Available FHA insured loans for manufactured housing include conventional mortgages (purchase and refinance) and reverse mortgages for seniors.

Under HUD’s guidelines, to be eligible for FHA backed financing, a manufactured home must have been built after June 15, 1976. This single fact creates an industry-wide problem but moreover an opportunity for a crippled RE market. Without available financing, manufactured homes built prior to June 15, 1976 (PRE-HUD) are virtually unmarketable, lose value, become rental units or are abandoned and deteriorate until they become condemned by the local building departments and have to be demolished thus leaving the homeowner or heir with a total loss.

The best overall solution that will benefit existing manufactured home owners, their neighbors who desire to maintain their property values, homeowner associations with the same goal, those desiring to purchase in a manufactured home community and sellers and heirs who wish to sell their homes, is to create an efficient and affordable method to replace non-eligible PRE HUD homes with brand new state-of-the-art Manufactured Homes
www.silvercresthomes.com

Westwood WC23 www.silvercresthomes.com

Believe me when I say it because I’ve seen it happen myself in several California and Florida Communities after major disasters i.e. Earthquakes and Hurricanes. Old dilapidated “Trailer and Mobile home Parks” made almost new due to the replacement of the destroyed homes and rehab and repair of damaged infrastructure, roads, fences, clubhouse and recreational facilities et. al.. When all was said and done many if not most of these rental parks realized major increases in value and many of them went on to become “condo conversions” or sub-divisions

This program will help turn these older if not often blighted “Mobile Home and/or Trailer Parks” into up and coming little communities unto themselves that the residents will be proud of and will benefit tremendously from when they want to sell.

Due to HUD and FHA regulations and the fact that Pre-HUD homes have diminished in value compared to newer eligible units, financing the replacement of a Pre-HUD unit is presently difficult if not impossible. Many if not most of the lenders that previously financed manufactured home sales no longer exist.

FHA will guarantee a long term fully amortized home loan once a new home is permanently installed on the site. In order to achieve the end goal of a permanent FHA mortgage, an owner must find a way to first finance the replacement of the older home.

This creates a market for short term bridge and/or construction loans. We are happy to announce that “GM MORTGAGE AND REALTY INC” can be your source for “Bridge Financing” anywhere in California. Other states will soon follow.

So if you know of any older “Mobile Home Parks” that have already been or are in the process of being converted from a “Rental Park” to a “Resident Owned Development” and they have “PRE HUD” homes (built before June 15, 1976) you have a potential gold mine at your doorstep.

COLD CALLS WILL WORK! With this program knocking on someone’s door will work. You will be doing those homeowners a favor by making them aware of this bridge loan opportunity. Many homeowners don’t even know what their options are and have to be educated and they will thank you for sharing with them. So don’t waste any time. Get in your car and start beating the streets in these “Condo Parks”, Sub-divisions and even private land where you know PRE-HUD homes exist before everyone else jumps into the fray and you’re just another me too standing on the sidelines saying “;Why didn’t I think of that?”;

If you’re a RE agent you just need to refer to your clients who are looking for affordable housing solutions or start a promotional campaign in your area to generate new leads. Then look for older MH’s that fit the profile. Share what you know with both parties (buyers and sellers) and use some ingenuity.

If you’re a lender it’s easy. Just share what you know with your clients or if you want to knock on a few doors I’ll bet you’d find one out of four that would appreciate and thank you for what you have to share with them.

The rest is easy You then just generate the loan app and if the numbers i.e., LTV, appriassal, income, credit, etc. pencil show us the deal and we’ll provide the “bridge loan”.

ON THE LEVEL General Contractors Inc., a licensed, bonded and insured contractor with almost 3 decades of experience in the Manufactured Housing Industry, will be happy to provide you with the removal and replacement of your clients existing home and CREST HOMES, Manufactured Home Dealer and Developer, will be happy to help you select and purchase a new HUD approved Manufactured Home for your lot or property.

If you are a licensed California Manufactured Home Dealer Crest Homes would be happy to joint venture with you providing your client meets the qualifications and parameters of the GM Mortgage and Realty Inc guidelines for this bridge loan program.

Good Luck in 2010 and May Your New Home Experience Begin Indoors

January 17, 2010 John Arendsen 0 Comments 433a, Blog, Manufactured Home Financing, Mobile Home Certifications, Mobile Home Financing 433A documentation in California, foundation inspection, Manufactured Home Financing, Mobile Home Financing, The Manufactured Home Foundation and the Engineer’s Certification