I was planning on buying a MH with land in a tax sale in Alabama but I am unsure of the legality of entering it since it is technically personal property.
Can a make improvements and rent it out?
@Devon Daniels Mobile homes are personal property. If the owner also owns the land, then the owner receives one tax bill for the land and the mobile home. If not paid, then the property goes to auction, but ONLY the land is sold, not the mobile home. In such a case, you have no rights at all to possession of the mobile home and are not entitled to make any improvements. If the lender wants to repossess, they can do so without redeeming first. On the other hand, many such properties have no lender, are in poor shape, and are truly abandoned by the owner. You can usually get a bill of sale to the mobile home from the owner. Or, you can rent the land to the mobile home owner with a written lease. Then, if they quit paying the rent, you have rights under Alabama's mobile home statute to basically take it in payment for unpaid rent.
If someone does not own the land, they pay taxes just like they pay auto taxes when the renew their tags. Mobile homes have a decal that has to go on them when the taxes are paid.
Sometimes a property owner will want FHA financing to purchase a mobile home. In that case, FHA requires them to cancel the title to the mobile home, which legally converts it to real property. Then FHA takes a mortgage on the land and the mobile home. BTW, simply removing the axle or closing up the bottom or even bricking in the mobile home does not convert it to real property. Only cancelling the title will do that. If the title has been cancelled, then the tax appraisal information for the property will NOT include the "MH" designation, and it will be appraised the same as it if were a site-built home, but probably using a lower per-square foot value.
Thanks for such great information.