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Arkansas Consumers Warned on FEMA Trailers

Posted By RVBusiness On February 8, 2010 @ 9:17 am In Breaking News | No Comments

Arkansas Attorney General Dustin McDaniel is warning the state’s consumers about predicted efforts to resell the more than 100,000 Federal Emergency Management Agency (FEMA) surplus manufactured homes and travel trailers which are being auctioned by lot to brokers and other resellers, according to KARK News, Little Rock.

McDaniel predicts that the retail market may soon be flooded with these surplus units which have been stored by FEMA  at several locations across the South since shortly after Hurricane Katrina in 2005.

“We expect that these units will be offered to the public in various venues, including the Internet, and at prices which may appear to be deeply discounted,” McDaniel said. “However, a discounted price does not necessarily mean the buyer is getting a good deal, and buyers interested in acquiring a surplus manufactured home or travel trailer need to proceed with caution.”

Over 90,000 of the surplus units being auctioned are travel trailers. The buyer will not know how long the travel trailer has been stored, or the conditions of storage. Many of these units may suffer from a lack of maintenance, and may have mold, mildew, or other water damage. There may also be issues with possible formaldehyde giving off gas and possible leaks in any LP gas equipment. Rules adopted by the U.S. General Services Administration (GSA), which is overseeing the auctions, prohibit the resale of the travel trailers for use as housing.

While resllers are required to provide prospective buyers with disclosure information received from FEMA regarding the condition of the unit, McDaniel urged Arkansas consumers who may be interested in purchasing any travel trailer or manufactured home to ask questions about the source of the unit and its condition before buying. He also suggested that potential buyers not rely solely upon the information provided by the seller, but also obtain an independent inspection of the unit before buying.

Finally, the attorney general noted that buyers may be faced with issues regarding titling and registration of a purchased unit, and questions regarding the payment of sales tax on the purchase. “Proceed with caution, extreme caution, if you are tempted to respond to what appears to be an attractive offer for a travel trailer or manufactured home,” McDaniel said.

For more information or to file a complaint, contact the Public Protection Department of the Arkansas Attorney General’s Office at (501) 682-2341 or toll-free statewide, at (800) 482-8982.

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