Expert: Dick Dennis - 1/9/2007

Question
The home sits on a solid foundation, it is a crawl space under the home (enough to stand in ) with my hot water heater and water pump. It never had wheels. So I was wondering why they would originally mortage the home as a modular and change there mind thinking it's a trailer,and this would have the value of my home depreciate immensely.  I own the 2 acres the home sits on but the mortage over exceeds the cost of the land.  So what I need to know is....Would they be wrong for coming the 1st time around and appraising it as a modular, then coming the second time around (5 yrs. later) and appraising it as a trailer ?? It's there money and should be at fault for the original appraisal.."?????
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What I was wondering could the mortage company be pulling a fast one by loaning me the money for a modular, when in fact it could be a trailer ???
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I recently tried thru my mortage company to re-finance my mortage.  I am currently paying a mortage on a modular home since 2000.  When they sent thier apprasier she classified my home as a trailer (which i believe it's not ) now any time I call my mortage company on the re-finance issue, they avoid the conversation.  I keep getting we'll call you back, and hear from absolutley no one...It's like a merry-go-round.  They mortaged my home as a modular.  And my question is something happening here I don't know ?? Thank You Donna
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Many mortgage companies shy away from modular homes. To them they are more of a risk. Your mortgage company may have changed their policy since they first gave you a loan.

There are plenty of mortgage companies out there. Keep on calling until you find one that is willing. Be aware that those mortgage companies that are willing to lend on a modular will probably charge a higher interest rate.

I do wish you well.

Dick Dennis          dixiedee13@aol.com
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I don't know how it is in your state, Donna, but here in California it is a mobile home if the wheels are still on. Trouble is, for most people they don't know if the wheels are still on because they can't see under the house. Further, if it is a mobile home, it is treated like any other road vehicle and the license is obtained from the DMV.

Banks will lend on mobile homes or modulars but the interest rates are higher and the term for payment is usually 10 to 15 years, sometimes 20. Mobile homes and modulars just do not appreciate in value like regular houses. So banks shy away from them. If you own the land underneath the house, like an acre or so, then the bank will be less shy about lending.

Keep on looking for a lender.

Dick Dennis

Answer
Just keep on looking for a knowledgeable lender, Donna. You obviously had an appraiser who just didn't know his/her business. Not everyone is proficient in their job, as you know. Just one thing: in today's market lenders are being very choosey. So, keep on looking.

Dick