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Types of Homes Sold at Rochester Foreclosure Auctions May Soon Change

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By : Allana Castro    99 or more times read
Those who have attended Rochester foreclosure auctions will likely know that dwellings like single family houses, duplexes, fixer uppers and apartment buildings are the most common residential structures offered in these events. But the popularity of mobile homes might soon increase the number of this type of residences in New York auctions.

While New York foreclosure auctions are dominated by regular-type family dwellings, some residents of the state have found that mobile homes offer them the best chance of acquiring their own home for a price that is not more than $200,000. Mobile dwellings, according to local housing statistics, have accounted for increasing numbers of affordable residences being sold and purchased in the state in the past few months.

Investors who usually buy foreclosure auction homes and are used to making their choices from different site-built residential properties are expected to pay more attention to mobile dwellings in the coming months as these types of houses become even more popular.

Even though mobile housing has not yet hit Rochester foreclosure auctions in big numbers, they are expected to soon comprise a large percentage of properties at auction as more people try to acquire homes for a cost that they can easily afford. Because of the increased attention that these houses have gotten, changes to loans provided to buyers have been announced by the Federal Housing Administration.

One type of loan offered to buyers of mobile residences is the chattel or personal property loan. Borrowers who opt for this type are often considered risky borrowers although they might have good credit histories. Because of this, not a lot of lenders offer this loan and government-sponsored mortgage firms Fannie Mae and Freddie Mac do not even buy personal property or chattel loans.

The FHA, however, has announced that it will now insure 90% of the losses that lenders may incur from chattel loans to make lending to mobile home buyers more secure. This move is expected to provide a wider market opening to low income and moderate-earning home buyers.

Although mobile dwellings are hardly staple items in Rochester foreclosure auctions, the changes implemented by the FHA are expected to bring these types of houses to the forefront of residential property buying in the area.
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