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About Smoke signals. (Grand Ronde, Or.) 19??-current | View Entire Issue (May 15, 2001)
10 MAY 15, 2001 Smoke Signals erils of Purchasing a Manufactured Home The problems that lead to financial peril for manufactured homebuyers fall into two general categories: financing and other costs associated with the purchase; and the site placement and space rents. By Jeannine Ferguson Attorney Grand Ronde Legal Services Manufactured homes are a popular housing choice, es pecially for young people buying their first home, and for re tired couples seeking a low-maintenance residence. However, as many homebuyers have learned, a manu factured home purchase can involve unexpected or unnecessary costs, which can occasionally be so high that buyers cannot keep up with their payments and expenses and may risk losing their home or even being forced into bankruptcy. The problems that lead to financial peril for manufactured homebuyers fall into two general categories: financ ing and other costs associated with the purchase; and the site placement and space rents. The first of these problems, financ ing and other purchase-related costs, can often be avoided if a buyer comes armed with some knowledge about financing terms, fees and the cost of setting up a manufactured home, rather than relying upon a salesman for this information. Many people are not aware that a manufactured home is considered personal property, like a car or camper; it is not real estate or real property. Unlike real estate salespeople, mobile home salespeople are not required to be licensed. The lack of licensing and the inadequate regulation of manufactured home sales can result in unscrupulous prac tices. Although the majority of deal ers are probably honest and ethical, oral misrepresentations by salespeople are a continuing source of complaint by manufactured homebuyers. For example, a salesperson may not tell the buyer about all the financing op tions that are available, may not dis close all the material terms of a sale that result in a higher cost than thy buyer intended, or may make decep tive claims about the resale value of the home (rarely does a manufactured home increase in value over time, but buyers sometimes are led to believe they do). One significant cost that buyers are frequently unaware of and which is not always fully disclosed at the time of purchase, is the setup cost. "Manu factured home" is the accepted term for what was once called a mobile home; the change in terminology may reflect the fact that manufactured homes are really not very "mobile" at all. Unless the homebuyer owns a lot on which to place the manufactured home park or community. Once the house is situated in a park, the chances are it will remain perma nently. Manufactured homes are subject to code standards that individual manu factured home parks must comply with if they want to keep their home in the park. At the time the home is set up in the rented place, the park owners will require the homeowner to pay for improvements that may include a driveway, carport, skirting, gutters awnings, deck, outbuildings, building permit fees, as well as sys tems development charges (e.g., sewer lines and the like). These "park pack ages" as they are called can be ex tremely costly, and the homeowner naturally gives up these improve ments without compensative if the home is removed from the park. Since moving the home is rarely a good option, the homeowner has lim ited leverage in negotiating terms with park owners, and also has very little recourse under current Oregon law to periodic increases in space rents. With very little regulation or over sight of the manufactured home in dustry, it is easy for a homebuyer to pay thousands more than necessary because of lack of information, or oc casionally due to deceit on the part of mobile home sellers and park owners. As a result of the situation, the Or egon Attorney General's office last fall convened a Manufactured Housing Task Force to look at the industry and recommend changes in state policy. Among the recommendations of the Task Force are: licensing for manu factured home salespeople; the adop tion of a uniform sales contract that would include a good faith estimate of all costs associated with purchase; and the development of first-time buyer education programs that would be made available by dealers. Other recommendations of the task force would make it easier for park tenants to acquire control of the parks where they live and mediation for disputes over rent increases. Unless and until the recommenda tions result in new laws or policies, manufactured homebuyers should proceed with caution and become fully informed consumers before sign ing a sales contract. IF YOU HAVE QUESTIONS ADOUT A MANUFACTURED HOME PURCHASE, PLEASE CALL THE Grand Ronde Legal Services 503-472-9561 1-800-781-8500 David and Donna Lewis are proud parents of SAGHALEY WAYNE LEWIS. Saghaley was born in Eugene, Oregon on March 6th, v. , ) 'j3 ' ! " v - " JOSEPH JORDAM STORM December 09, 2000 8lb$and2oz-1934inche$ Parents: Jeremy & Sasha McKnight Storm Grandparents: Raymond McKnight and June McKnight ft 0 HAPPY FIRST BIRTHDAY BRODY 05-24-2001 Love Mom and Dad, Grandma's and Grandpa's, Uncle Larry and Aunt Jyn Hoeper, Olsen and Peed families. GSM . 10 years of experience ' Located in Lebanon, Oregon Contact Ecima Lugo 541-259-2017 mm mmm wmu&Eii r c nSh . 'ihi SiiS M'ttcvzr TOMMY JOE MELSON, age 16, grandson of the late Lauretta Hudson Foster. Tommy Joe shot this 4x4 mule deer opening day in Eastern Oregon in 2000. The buck was entered in a Big Buck Contest that Tommy won. He received a trophy and a free head mount. HAPPY 41st J WEDDING ANNIVERSARY Patsy & Gene Pullin . ll(l1M 0 IIIIH' "f(lli -tl- 'linlirt: Happy Birthday PELORES SPOHN GOOD Mayl I H; . I
