you are misunderstanding the statement, I believe. In some states, MI included, when you attach the home to the property, there is no longer a title to the home. You actually relinquish the certificate of title to the building to the state. It becomes "one with the land". It is no longer separate property. In those cases where the home has been de-titled, it is real property just as a site built home is.
When you sell the property, there is no title to the manufactured home to deal with. The entire estate is transferred via deed.
Yes you are correct. The risk associated with a manufactured home being a part of the "real property" are actually higher then they are in an unimproved land situation. The manufactured home once it has aged can actually depreciate the value of the improved property.
(determined by algorithms, done by actuaries who determine risk for XYZ and tell lenders who they should and should not lend to bla)
Yes it can be converted to "real property" but will never be lendable in a traditional mortgage situation. (As in no big house will ever buy the paper, if Citi, BofA, wells, and GMAC say we aren't buying this type of loan no one is writing it.... That means brokers, direct lenders, banks and the likes won't originate for fear that they could end up holding the loan indefinitely and in the event that cash needed to be raised it could not be bundled and sold on the open market)
Credit unions have historically and remain the best avenue for this type of note.
very off topic at this point, but still valid information.
