Some people in the United States have stopped paying their loans on mobile homes. This is a bad sign for the economy as many no longer can afford the increase in interest rates.
According to a report by Yahoo Finance, the mobile home market is showing the first signs of stress. The delinquency rate on mobile home loans has increased by 200 basis points, or 2 percentage points, over the past year, according to research cited by UBS. The 30-day-plus delinquency level is now about 5%, the highest level since 2005.
The increase in the number of struggling mobile-home borrowers suggests that a large chunk of these people haven’t benefitted from the economic growth of the past few years, despite the low unemployment level. For those living paycheck to paycheck, even the slightest increase in interest rates could force them to decide whether to eat or pay their loan on their home.
“We interpret this data to mean that these individuals have not largely benefitted from these macro-dynamics, and may also be disproportionately exposed to industries that have experienced compression — rather than expansion — in the current economic conditions, such as retail or some areas of energy extraction,” UBS said.
Although this is a warning sign for the economy, conventional single-family residential loan delinquencies haven’t seen a similar uptick. Instead, they are continuing their steady downward path through the post-recession recovery. But many analysists would argue there was never actually a recovery. In 2016, Peter Schiff warned that we were in a false recovery: one that’s worse than a legitimate recession.
“The real choice is not between recession now or recession later. It’s between a massive recession now, or an even more devastating one later … Now is the time to bite the bullet, endure the pain, and allow the wound to actually heal,” said Schiff, who accurately predicted the 2008 recession and says the recovery isn’t a real one.
Since 2009, all of the standard metrics for indicating a recovery have shown sub-par results. The only growth has occurred in asset prices. However, higher prices in stocks and bonds haven’t occurred because of upward pressure from a free market, but have been artificially inflated by easy borrowing and risky speculation. Consequently, the “recovery” we’re supposedly experiencing is as artificial as asset prices themselves. The next bubble that will have to burst is the Fed’s own fantasy it’s been selling investors. –Schiff Gold
The truth is, the US economy is stuck; raising rates will send the US into a recession, but keeping them the same will make the eventual pain of an economic crash much worse. “I agree with those who believe that rate hikes now will bring on a recession,” Peter Schiff stated in an article. “But I disagree that we should keep rates where they are … despite the short term pain that will surely follow, we need to raise rates now to break the addiction before it gets worse.”
But UBS did admit that losses will start to impact other debts as well, and likely soon. “We believe weakness in these two groups [lower and middle class] will drive higher credit losses at some stage over the next few years — particularly in credit card, installment, and student loans — with macroeconomic inflection from job growth to job loss as a likely catalyst,” UBS said.
Now is a great time to prepare for the economic collapse. The economy won’t last forever being propped up by debt and Feds manipulation of the markets. But the good news is, prepping for the eventual collapse is made easy with the book titled The Prepper’s Blueprint. It’s a great resource for those just starting out and for those who may have overlooked something.
Delinquencies in mobile home loans are not a function of rising interest rates. These are not adjustable loans, which are sought after during periods of high rates to lower payments for a home purchase. We have been in an extended period of low fixed rates.
More than likely, the MOBILE HOME PARK OWNER is raising his space rent, causing senior citizens on fixed incomes to walk away from a cummy home they can no longer afford, and instead, now qualify for HUD rental subsidies.
It’s a no-brainer.
I know a woman who has government subsidized apt rental in a very nice senior complex in North phoenix for CHEAP based upon her low social security income. Water is included so she only needs to pay for electricity, which is minimal in winter.
She spends the summers in the pines. 🙂
DK you are right, they are raising lot rents which makes sense, just like they raise apt. rent.
DK, back in the late 90s I found a 5-acre property with a single-wide on it about an hour’s drive from my Dad’s place in the Ozarks. I applied for a mortgage and was turned down due to no previous credit history. This was when we still had a decent economy. I don’t know the average price for mobile homes nowadays but if someone can’t afford one of those you know something’s wrong somewhere. Those are still cheaper than a single-family home.
I bought an 11-year-old one in 1982 for $3,000. So you know it was in tip-top shape, but it was livable and cheap housing. I sold it three years later for $2,000. So it only cost me $30 or $40 a month, plus the lot rent of $50 or $60.
A lot of people are paying $40,000 or more for a new mobile home, when they should shop around for an older one. If one is old enough, it has depreciated about all it ever will as long as it’s livable.
That’s so true about depreciation. Anything on wheels, whether for transportation (car, truck, etc.) or habitation (mobile home, RV, etc.) is subject to high amounts of depreciation. I prefer to purchase a new vehicle (not a $75k thing either) but I keep driving them for at least a decade. With proper maintenance, they last.
“Mobile homes” are not really mobile once they are set in place and older mobile homes sometimes may not be moved after they reach a certain age. In Arizona, the last I knew that age was 30.
Manufactured homes are a good bet and a new cheap 1200 sf one can be had for about $40 – 50k. Add the cost of a lot (remember my previous BOL link), septic, and electric connection and you can be in a decent home with room enough to grow your own for $75 – 100,000k.
With 3-4% mtg over 30 years your payments could be reasonable enough for most buyers; but especially a two income, first time buyer looking to start a family. 🙂
I worked at a resort where they put a roof and log siding on a late 70’s mobile home, new windows and T&G walls. They put a porch and deck over the tongue of the home with sliding glass doors from the kitchen, and a gas burning stove with a fire.. Cute as a button and being close to a lake rented it out for $400 a week as a honeymoon cottage. They basically got it free and added the ambiance of a log cabin.
You’re right. This has little to do with interest rates on homes already sold. Owners of mobile home parks have raised rent on lots 300-400% and more over the past several years. Why? Because they can. Most people can’t afford to move their mobile home simply because the park doubled/tripled their lot rent. It’s easier to walk away. Further, large investors have been buying mobile home parks for the past 5 years and raising rates all over the country. There are fewer and fewer parks left with reasonable rates.
Just CRASH & BURN already. . . . . .
Hey everyone google/check out what Deerfield Illinois village just passed a total ban on simi auto weapons rifles and pistols and shotguns 1,ooo bucks a day fine if you dont turn them in.. I say march the 1200 fookers comming up from mexico right up to Deerfield. Then put a fence around it ….Hope this dont spread like the flu cus if so be alot of dead…
Creepy Joe Biden said everyone should buy a shotgun instead of an AR-15. Now you they have taken both of those away.
Bans are extra-legal. Bans get around due process. They are only enforceable by force. And that is what this is coming to.
I’d open a gun range on the edge of town.
Just sayin.
“Say it ain’t so Joe” (catchy phrase for Biden in Delaware) stated in December 2001 that the US troops should fight “Manno to Manno” in Afghanistan because we look like “High Tech Bullies”. Yes send your son up a hill on a bayonet charge for appearances when we have weapons that can save our troops lives. Idiot.
Time to show them what the 2nd adm. is all about.
I am SO glad I got the fuck out of Illinois when I did! This is absolutely unconstitutional. They have essentially banned ALL weapons manufactured after black powder rifles! But I am not surprised. Its a liberal SHITHOLE up there in IL. Sgt will tell you!
The problem with the economy is millions get a free life and don’t work a single minute, all paid for using debt money created out of thin air.
Why did the US population increase by 37 million from 2000-2018 but yet the birthrate is below the replacement rate. Answer: to get as many people in to the entitlement system as possible, thus making the system a trillion $ per year cash cow for Wall Street companies, and doubling the national debt every eight years from no on.
Bert, most of that increase is foreigners whose only reason for coming here is the money. Cut off those benefits and the foreigners will leave on their own.
America is comming down with a bad infection fortunately there is a cure and we on here know what that is…
A direct lead injection. “Pb; the OTHER noble metal”!
if you had to finance a $15k home…
Not trying to be dickish, I get living paycheck to paycheck but lets look at the math:
15K loan at %4 interest over 30 years is about %75 a month
DOUBLE the interest rate on that same loan, the payment goes to about %110.
The rate has not nearly doubled by the way. Its an extreme exaggeration to illustrate my point, which is:
If $35/month is completely breaking you, you have bigger problems than the economy.
moble phone typos… $75/month, $110/month… you get the math.
The lot rent is what is getting them
Many older Americans (my grandparents for one) who live in these double-wide retirement communities get together and buy their condo community outright. Then they own the land. They still have to pay property taxes, but they are no longer being eaten alive by “association dues.”
When my parents had a mobile home in a retirement community, they worried about the lot rent, too. Often it wasn’t upgrades or maintenance to the community property but rising property taxes that caused the increase.
That makes sense. article implied interest rate increases. If its the lot rent raised regularly until people are forced out, then theres an issue with the slumlord that needs to be addressed.
Mother in-law lived in one those retirement communities in Lakeland FL. Trailer was $10k and park owner increased the lot rent 8-12% every year. By the time she left rent was close to $700 a month.
BTW the owner was dot head – Indian.
A cheap mobile home is $45K and a nice one is $100k+. Lots in my neck of the woods start at $500-$600/month and for $800+ you get the large lot and access to the community pool.
HELLO!!!! My mortgage is less than the $800 monthly lot for those mobile homes..must be California lots we’re pricing there. WOW!!
But, I will say rent here in Ky. is almost as much as a mortgage pt.
Dayyum, a decent house rents for $800 in middle georgia
No bank will loan only 15K for a used mobile home. I know, I tried, so I had to go the minimum of 35K but had to put 60% cash down on mine first. $227 a month at 6.75% interest, 30 years. But it was so cheap I’m getting it paid off in half the time.
Even the mobile homes are all filled up in this area. The park owners raise the lot rent like clockwork. You own the piece of junk yet the lot rent keeps on rising. All the while the dictates from above is that they want the park to be immaculate and their mobile home park is not the typically called trailer trash hole. They squeeze them in a few feet apart. Eventually it makes no sense to keep upgrading 60+ year old trailers. You pay at least thousands to buy the dump then when you want to move they offer 100 bucks for that shithole.
Happier than a Tornado in a Trailer Park!
70-percent of all Californians cannot afford to buy a home. Half of all Americans cannot afford the home they already have. What do those stats say about the health of the country and the “recovery” (so-called).
OFF SUBJECT
To The Florida Posters:
There will be a Second Amendment Rally Saturday April 14th In Tallahassee Florida. Shoot Straight the gun store chain is renting dozens of busses for free transport. Contact your local Shoot Straight store for times an to sign up. One is leaving the Wall Mart at Colonial Parkway in Fort Myers. Be there by 6AM.
Finally. Somebody is standing up against these Soros owned cultural Marxist gun-confiscators.
I cut my eye teeth with this almost 3 decades ago in NJ against then governor Jim Florio. NJ gun owners were highly organized. Gun shops were the pulpit where information was disseminated. The Coalition Of NJ Sportsmen was an example of how its to be done. The democrats were badly beaten, Florio lost never to be seen in politics again. Some “reinterpretation” of S-166 was made by the AG that was favorable, a handgun ban was stopped. NJ demographically is a suburb of NYC and in the long run hopeless. If not for the efforts of hard core Second Amendment advocates NJ would be far worse than it is. Fleeing to Delaware offered respite an eventually a CCP too. I found the Delaware shooters no where near as adamant as those in NJ. Necessity certainly is a catalyst for political activity. Florida is not the south in culture but make no mistake many former NE Yankees like its far more liberal gun laws as about 2 million carry permits can attest. Politically they’re a “Sleeping Giant” that are just awakening from a long slumber. Their organize votes will dwarf the former NY / NJ / Mass liberal carpet baggers.
I hope so. I really hope so.
I grew up in Philadelphia. Back then we had a river separating us from New Jersey, and a long bridge. And we were very thankful for both.
There is a bill board sign on the PA border saying “America Starts Here”. Gun owners in NJ longed for that, so close yet so far away. The PA counties close to South NJ Trenton down are either bad or way too expensive.
Philadelphia, stay to the East of Broad St, Termini Bakery, Chinks Steaks, 9th and Christian, drag racing on Front St and Delaware Ave, Penn’s Landing….miss some of that.
I’ve been to Philadelphia, but I would never live there. There were some ugly women standing on the street corners. There were people double-parked and even triple-parked downtown. I even saw one car that had pulled onto the sidewalk in front of a store. The cops weren’t stopping for red lights.
Its an old city with sections not designed with every home owner having a car. Boston is similar. Still certain sections have a very strong sense of community like the remaining Italian neighborhoods in South Phila. Streets that had “connected” guys living there had no street crime at all. The locals looked out for the mob guys warning them about strangers and the riff raff were not allowed to be there. They all knew and looked out for each other.
A lot of the “old city” in Philadelphia has disappeared. You use to be able to just walk into Independence Hall. The Liberty Bell was parked right in the hallway. Anybody could see it.
A lot of the “old city” has just crumbled away. Old buildings falling in on themselves from decade upon decade of “benign neglect.”
Back in the 1950s my Dad worked construction to help pay for his education at Penn. They were always stumbling upon closed-up cellars, old wells (some having valuables tossed inside for safe-keeping during the Revolutionary War). The past use to be so rich in Philadelphia that you almost expected George Washington to show-up for a cheese steak.
Whenever some lunacy took place in Trenton or Camden the folks “on the right side of the river” in Philly would just shake their heads and say: “They’re from Jersey.” As in “Well, what did you expect.”
I miss Ft. Myers. Lived there for over 20 years.
Though I now own a regular home( very humble house) I’ve owned two mobile homes, one was in a park and the other on my personally owned acreage. One I lost my butt on and the other I made lots of money on.
I can say anyone buying a “mobile” home in a park is making a very big mistake. That is like buying a time share. Unlimited cost increases, you still have to deal with a landlord, and you can’t sell it. Due to circumstances I had to walk away from the home in the park, I had gotten a job in a different state and could not afford to cover the loss of paying off an underwater loan.
You need to write letters and explain your problem to the loan people. They never came after me. I got a VA loan for a house six months later( that is another story).
Moral of the story, If you want to buy a mobile home in a park, get a high end RV and register it in a state that has cheap tabs. You’d be a lot better off.
I am a homeowner. Paid my mortgage off in 2008. It actually took literally everything I could do to do so. Austerity to me is not just a word. Wife ended up not being able to take the measures it meant to get debt-free and then stay that way. Still got the house, not the bride. Oh well. I’ve a novel idea. Get rid of the concept of interest. A flat-rate fee to get a loan. You borrow a sum, say add 10% to the overall amount that needs to be repaid. No more amortization. Banks would hate it. The cabal that invented shylockery would hate it. Escrow would be much the same. Or the buyers would simply have to provide for their own taxes and insurances. So damned simple. You could teach a kid in grade-school how to do it. If we don’t change the entire system, nothing is going to change for the better. Interest …… is that not something we could all just live without?
Heart,
I’ve been debt free since the middle 1990’s. I had a 4 bedroom home(used mobile home) on 5 acres and a 45 foot(very used!) sailboat. My land looked like a bomb hit it, but when I sold it, it had more than 500 trees, many of them marketable timber.
It all has to do with your skill set and what you can do.
I bought used and broken stuff and fixed it.
My first Honda Gold Wing motorcycle(used) was bought on a flat rate loan from Rainier bank. IIRC it was a 6% flat rate loan.
So those sort of loans have existed. I’m not sure they do now.
But then again I haven’t borrowed money since the 90’s.
Rellik, it’s awesome to be debt free, isn’t it? That’s how I’ve always been able to buy more preps at one time than most other people would. In a way it does suck for me NOT to have a place of my own but such is life. I’ve got the BOL to come to whenever the balloon finally goes up. At least I won’t be stuck in the damn urban rathole where my home and job are currently located. In some ways it’s better to be debt free. All my vehicles have come from private owners for cash only. No financing ever. Saving up for an old truck now and hope to find one sometime this summer.
Heartless:
If only it were that simple don’t you think the banks would have been forced to reform ages ago. Almost all of us want that reform. The bankers know we don’t want to be sheared. But these are guys who kill for a living. They don’t mess around. To change the system will take the overwhelming support of the people. And that is in progress as we speak. That’s why they are working to get control back of the flow of information. The ability to disseminate information is power. The ability to control what we see, hear, and read is the basis of power.
There is a slow but steady transfer of power from them to us. They know it. They already hate it. And many of them, not all, hate us as well. As they came to power over a long long time, it may take a while. Don’t get discouraged. We will win.
_
B from CA – I agree. totally. I’m just impatient and haven’t the luxury of being able or willing to change. Too fixed in my ways I guess. Whereas I agree that getting control of information is important, it isn’t enough. Power comes from the barrel of a gun. Who said it best?….Hmmm…. ‘one man with a gun can control a hundred without’. We need a lot of those men (and you too ladies) doing some major-ass controlling. (and hey, Kevin2 below…. even I laughed at your “shocking”, LOL. Women!!!, God created these lovely things and then forgot to give them ‘xxxxxx’……….. I’ll let all you guys fill in that blank!!!)
Heartless:
“Wife ended up not being able to take the measures it meant to get debt-free and then stay that way. ”
Shocking…….
“satire”
Heartless,
I don’t think you’ve thought through your idea of just giving Banks 10%. The Banks supply the money, so if you don’t give them a market rate of interest there will be no “supply”. Lots of demand, but no supply of money. Not good. Let the free market dictate interest rates. The “market” knows the correct rate of interest. Trust the market. Of course, at this period of time, we have a suppressed rate of interest on loans as well as deposits due to the bond buying being done by the world’s central banks.
T
” Let the free market dictate interest rates.”
Na, let the banks set rates by increasing M1 & M2 as they see fit and then with a straight face call it capitalism condemning communists with a planned economy and central planning.
“satire”
T – if we had a fixed money supply it could cause a stablity in a lot of ways. There’d be an awful time for the transition; but in the end, would not it be better to be able to be honest about debt? You ask me for $100. I say “sure T, I’ll loan it to you; but, if we agree here you shall pay me back $110, the full amount in 10 months – $11/month”. You buy that ‘power driver’ or whatever, make some income, pay me back. No one real – us real working slobs that is – lose anything. You get the chance to do better work, perhaps more of it. I gain $10 and we both gain both mutual trust and maybe even friendship. Tell me, how is it working out today? It isn’t. No my fellow-SHTF poster, we have lost what it means to be a society by worrying about the market, rates, money supply, banks… we’ve forgotten to be what we are – people, making up a country who believes in one another. I respectfully disagree that any mechanism to support uncaring, unprincipled, unethical and legalized thievery should be allowed to exist; let alone, continue.
This site is highly monitored and censored by government agents.
Oh really? Any proof for that claim? Because we sure would like to know about it.
Mac,
I frequent a site called Free Republic.
I was banned in 2010. I figured out how to get
posting privileges back as a different user.
I once mentioned I comment on your site shtfplan.
A moderator on the Free Republic site matched up my new
FR name and my banned “rellik” and
they kicked me off again calling me a retread.
I think the guy is known there as Blam, as he posts
a lot of SHTFplan stuff.
Your site is very well watched by others.
No proff at all; just common sense. Have you not been paying attention to the admitted surveillance news lately? Or in the past 20+ years? I’m trying to warn others to STFU Mac, and you should too…
Monitored? No doubt. Censored? Hasn’t happened to me.
K2,
I ‘m pretty certain they don’t censor this site other than the wordpress trip if you use “Bad” words, like J3W.
This site is definitely monitored.
Better Homes And Gardens is monitored. They’re getting overtime watching over this site.
Well then they know they’re gonna get their asses killed by patriots when they come a calling for the weapons. The world is full of traitors and scumbag government stooges.
Not only that but her breath smells like she went to sleep sucking on a turd.
Big business’ government’s restriction of who is allowed to do business keeps these people from conducting their own truly and totally free and realistically-rewarding enterprise (and providing the public a choice among whom the customers can really regulate by their freedom to chose), often doing the same things that they are now only allowed to do for a big business–if any of those big businesses will even hire them without demanding Communist Chinese-level working conditions for their employees.
A good friend of mine owns her double wide in Florida. Rent went up to 650.00 a month.
She can afford the rent (just barely). Groceries and medical are becoming too much along with this increase.
Next thing I know my Son was Laid Off and living off of minimal savings, finally found a job but not without going into debt.
Brother called out of desperation. Laid off as well. Never said a word until there was a 2 month delay in rent and nothing to eat.
Yes, even a 4th who was about to be in the streets with no warning, help or hope.
This is our new world. The rich get richer and the poor get poorer. WAKE UP! Stop Judging!
Don’t judge me or your neighbors……many sinking and not sharing.
The lot rents are high. A modest, but nice 1300 sq/ft home in SW Florida in a very safe area went for $120 K five years ago. Its about $180 now. Regardless taxes and home owners insurance combined is $300 month. Thats affordable. Put that home in NJ an its $250k (in southern cheaper NJ) with taxes & Ins of $850 month easy.
tishie,
$650 a month for a mobile home lot? That is crazy. She’d better off buying some land and moving it.
My family has for years imposed upon me for help, and fortunately I could help them.
I have some rules;
There is only two people in my family I’d loan money to.
Everyone else can get a place to stay, rent is $50 per month.
But it is at my property, we have lots of room.
My wife handles the food costs with them.
This has worked very well for brothers, cousins, nephews,
inlaws, and such.
I always feed family that is at my table.
I will also feed and water strangers as long as they are
well behaved.
I guess I read too much Homer and Bible.
yes, your being monitored. Get real, your site isn’t even secured. Most of the time your security cert shows invalid. Wake up and fix your site now. You have 21 tracking scripts minimum. Learn what your doing Mac. Its even says when you post this message site not secure and can be viewed by a third party DUH
Loose lips sink ships. How secure is your vessel?
A “home” that depreciates substantially and the lot rental rates keep going up = a recipe for disaster for most of these people; many are either under-employed or retired.
better to buy a motor home or fifth wheel trailer. That way if you don’t like the rent, taxes , neighbors ,weather ect. You crank that sucker up and move. A 5 the wheel you can hire someone to transport it and not have to keep up a vehicle. I know a middle aged woman. Who lost her husband and lost most everything. Rather than mooch off of her children. She had a old 4 wheel drive truck and large gooseneck stock trailer. She converted the trailer into a home. and is debt free. She was always a horse person. She found work at a dude ranch riding stables place. She now gets paid to do what she used to spend money doing.
here in Oregon, Clackamas County has decided in its wisdom that manufactured homes with an “assessed” (NOT appraised) value of less than $15,000 will be exempt from property taxes, because so many old people could not afford to pay property tax on their units and were simply living in their units until physically evicted. Land in Portland Metro has become unbelievably valuable because of the rigid urban growth boundary system which stifles expansion, and many mobile home parks are being sold outright to land developers. Some park residents can cobble together enough financing to buy their parks and run them themselves, but in the long run people don’t want to be bothered with the day to day park management and issues and so tend to hire out the park management to outside firms just like apartment rental agencies, and so costs tend to go up even in resident owned parks, it’s a no win situation unless you can buy into a park that is owner occupied so the rent increases aren’t too bad. The earlier suggestion to buy an RV and title it in a cheap state is becoming more appealing.
yep buy a RV and title it in South Dakota. spend the cold months in the warmer places and the hot months in the north.
The “hidden” part of this economic puzzle is inflation. It’s eating up the poor and the lower middle class, because the money they earn is worth less every day. If their income is indexed to inflation, they are always getting underpaid because of inflation. Inflation is a hidden tax on all you earn, and it discourages savers, unless they get their money into some vehicle of value. Building real wealth takes time, and a stable currency. If the currency is bunk, you have to find something like Precious Metals, or something with real growth and value above the inflation game. People in mobile homes who are young have a great tendency not to save. They simply cannot save now because the dollar is worthless.
Nothing like living in a Pepsi can.
A house across the street from me is up for rent @ $1,500/month. I couldn’t afford that, yet all I see is ghetto pavement apes looking at it. I am so sick of barely getting by (and I have a good job) while all these sub-humans get subsidized EVERYTHING from the govt…. Somethings got to give…..
Population reduction.
The assessed value of mobile homes generally decline faster than a home built on site. If there is any time on the mobile homes, the sale value of the mobile home will be much less than the balance of the loan. The more of these foreclosures, the harder the financial impact on lenders.
The Fed and their foreign bankster owners are what drive up interest rates, start all wars. cause recessions, depressions,lead to real inflation (soaring home and rent increases)and people are looking for the reason? Come on and see what has always been staring you right in your face.
The Rothschilds, Rockefellers, Goldman Sacks are laughing all the way to the bank because they are the bank and own you and your corrupt government non-representatives.