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#5220 - 10/03/01 02:38 PM Mobile Homes
Anonymous
Unregistered

What determines if a mobile home is considered to be on a permanent foundation with respect to flood determintaiton requirements? I am thinking that being anchored or tied down means permanent. But if the MH still has the wheels and is not connected to utiilities it should not be considered permanent.

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General Discussion
#5221 - 10/03/01 02:44 PM Re: Mobile Homes
cboynefirstgabank Offline
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cboynefirstgabank
Joined: Apr 2001
Posts: 147
brunswick ga usa
I'm not sure, but I bet you could call your insurance salesman and they would be able to tell you how they insure it against flood.

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#5222 - 10/03/01 02:45 PM Re: Mobile Homes
Angel Eyes Offline
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Angel Eyes
Joined: May 2001
Posts: 4,599
I don't know how to attach an earlier post, but I asked this question 5-18-01.

The discussion topic was Flood - Manufactured Homes. I think it will answer your question perfectly!


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#5223 - 10/04/01 02:38 PM Re: Mobile Homes
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,348
On the Net
Here is the thread, http://www.bankersonline.com/ubb/Forum1/HTML/000445.html

Here is the answer per Tom Easterday.
To be insurable, a mobile home must:
1) Be affixed to a permanent foundation. A permanent foundation for a mobile home may be a poured slab or foundation walls, or may be piers or block supports, either of which support the mobile home so that no weight is supported by the wheels and axles of the unit.
2) Be anchored to the foundation to resist flotation, collapse or lateral movement by providing over-the-top or frame ties to ground anchors; or in accordance with manufacturer's specifications; or in compliance with the community's floodplain management requirements.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

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#5224 - 10/04/01 03:53 PM Re: Mobile Homes
Terry Offline
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Terry
Joined: Sep 2001
Posts: 314
Midwest
Given that the correct answer involves some technical items that the lender may not know about the particular mobile home, I train our lenders using this simple concept:

If there is a flood, will your collateral float away or will it be underwater? If it floats away it is not qualified for flood insurance.

I think this errs on the conservative. If it is tied down in any manner the lender will need to follow up with notices to obtain flood insurance. We may find out from the insurance company salesperson that it is not tied down in a manner that meets the insurance requirements, but at least we didn't let one slip by that should have been insured.

If anyone thinks that I have missed a crucial point in my attempt to make the rules easier to learn please set me straight. The flood reg is still a hot topic and I don't want to send anyone down the wrong path. Thanks.

[This message has been edited by Terry Fitz (edited 10-04-2001).]

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#5225 - 10/04/01 09:58 PM Re: Mobile Homes
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I represented this arguement before, but I'll do it again.....

So Terry, if what you say is true, then a mobile home that is not tied down is not a mobile home per the FI rules? When the flood floats the borrower's mobile home (MH) away and their attorney calls you and says "we you supposed to inform my client that they were in a flood zone" are you going to say "No, because according to my interpretation of the FI rules, the MH they live in is not really a mobile home"?

Maybe I'm the one that is conservative, but if a MH isn't tied down, make the borrowers tie it down so that it qualifies for FI. By the way, anymore not to many insurance companies will sale hazard insurance on a MH unless it is tied down.

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David Dickinson
http://www.bankerscompliance.com

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