Are titles from FEMA marked salvage or unfit for habitation? How will a dealer realize that it is a FEMA trailer if it has all the tanks etc. Any ideas how to avoid this potential<br />lawsuit or worse?

FEMA trailers: The gift that keeps on taking year after year <br />Jul 13 <br /><br />Written by: Greg Gerber <br />7/13/2009 12:55 PM <br /><br />If a private business tried this, the owners would be tossed in jail tomorrow.<br />FEMA, the Federal Emergency Management Agency -- the guys who redefined government inefficiency during hurricanes Katrina and Rita -- continues to cause problems for the RV industry.<br />The agency is now unloading scores of its "surplus" travel trailers purchased a year or two ago as emergency shelters for hurricane victims. One individual in Maine plans to sell more than 80 of the units from a shopping mall for between $6,950 and $9,950. In fact, just about anyone can buy one of the units by visiting www.gsaauctions.gov, clicking on the "Trailers, Tractors and Manufactured Housing" link on the left side, and selecting whichever unit they would like to buy.<br />Here's the problem. Are they new or used units?<br />I looked at some 2009 TL Industries units today. There are a bunch of 2008 models as well. They look good on paper. Buyers must sign a disclosure stating they understand the unit may be emitting formaldehyde, and they have to get their own financing. But, it looks like someone can walk away with a nice bargain.<br />It is an especially good bargain if the unit is truly used because an unscrupulous seller, or unsuspecting buyer may be able to obtain a new factory warranty on the unit.<br />Each unit built by an RV manufacturer comes with a certificate of origin, or birth certificate, as Bill Garpow, executive director of the Recreational Park Trailer Industry Association, likes to call them.<br />In normal circumstances, the certificate is held by the manufacturer or a finance company until a unit is sold and then the certificate of origin is converted to an official title.<br />However, the federal government never took title of the units they bought. Consequently, they will issue what is known as a Standard Form 97 or SF-97 -- something they give whenever they sell a vehicle. The form contains a blank for an odometer reading. That way people buying a car or truck from the federal government would know that if it is new or used by the amount of miles on the odometer.<br />Unfortunately, odometers weren't installed in the travel trailers used by FEMA. And since the SF-97 doesn't contain a box to indicate if the unit is new or used, it's up to the buyer to figure that out. In fact, buyers can simply take the SF-97 to their local department of motor vehicles office and get a brand new first-time title for the unit.<br />What comes with the title? A new warranty and lemon law protection. For the RV industry, this practice is opening up a whole can of worms, especially for suppliers.<br />Brad Sargent, with Dometic, described the situation this way. He said basically people are buying a unit that has never been sold before, but has been lived in for three years.<br />If warranty work had been performed by a FEMA contractor, the supplier's warranty clock would have started ticking when the repairs were done. However, if a new buyer gets a brand new title for the trailer, it is likely he will assume the unit has never been used and that the original warranties still apply. But, if he encounters a problem with the same appliance and submits it for warranty repair, he will be very surprised to discover that the warranty had run out years earlier. And that would leave the supplier companies in a very uncomfortable situation.<br />Garpow said his group is attempting to get FEMA to appreciate the situation in which RV businesses find themselves. He said the agency's reception has been lukewarm, but they are looking into it -- as is the government affairs department at the RV Industry Association.<br />One dealer I talked with this morning was concerned about

"Welcome to my world" having been an RV dealer in Mobile, Alabama for over 35 years, this story does not surprise me. I have had auction after auction just a few miles from my front door! This problem with FEMA trailers started back in 2005! selective buying from politically connected dealers/non-dealers, scam after scam and finally GREEDY manufacturer's brought this situation upon all RV dealers located on the Gulf Coast. It does not surprise me that FEMA will dump this garbage on us yet again, none the less we are still trying to recover from the Screwing we have taken here on the gulf coast from BP OIL!! Thanks FEMA we have the vasoline ready!! GO AHEAD MAKE MY DAY!

Texas woman facing charges over sale of scrap trailers<br />By TEXARKANA GAZETTE<br /><br />TEXARKANA — Six counts of felony theft of property have been filed in Arkansas against a Texarkana, Texas, woman on accusations that she sold FEMA trailers as livable housing units when they were classified as scrap, records show.<br /><br />Cindy Wade, 58, will make her first appearance Tuesday in Little River County Circuit Court. If convicted, theft of property carries a potential sentence of five to 20 years in prison and a maximum fine of $15,000 or both.<br /><br />Wade was arrested earlier this week at the Little River County sheriff ’s office in Ashdown. She posted $10,000 bond and was released.<br /><br />The investigation involved mobile homes originally purchased by the Federal Emergency Management Agency for use in natural disasters. In 2009, FEMA began reducing its inventory of mobile homes to save money on storage costs.<br /><br />The Wade investigation began June 2, 2009, when the General Services Administration’s Office of the Inspector General received information from the Arkansas attorney general’s office about a complaint against Wade selling the FEMA mobile homes to individuals “as livable units” when the mobile homes were classified as scrap. The person complaining was not listed in the arrest affidavit.<br /><br />The inspector general’s office contacted the General Services Administration’s property management division and confirmed that Wade, serving as manager ofJ-LU Limited Co., purchased 15 mobile homes in three GSA auctions.<br /><br />Wade purportedly told the “complainant” that the mobile homes could be used as housing, according to the affidavit.<br /><br />The General Services Administration auction website states that “the mobile homes were not to be used for housing,” according to the arrest affidavit.<br /><br />Records at the General Services Administration’s property division show Wade signed a buyer’s certification after each of the three sales indicating the mobile homes would not be used for housing.<br /><br />“The buyer’s certification indicates Wade is supposed to inform subsequent buyers the mobile homes were not to be used as housing and provide buyers with the accompanying documentation,” according to the arrest affidavit.<br /><br />The arrest affidavit shows that General Services Administration officers interviewed at least six people between Oct. 28, 2009, and July 22, 2010, who had purchased mobile homes from Wade.<br /><br />Although all of the purchasers apparently received bills of sale, none received titles to the mobile homes, according to the affidavit. None of the people said he received any additional documents when the sales were completed, and none said he was told that the mobile homes could not be lived in.<br />

Full Disclosure Not Working; Unsuspecting Consumers Buying Katrina Fema Trailers<br />12:02 AM, Nov 24, 2010<br /><br />ELLIJAY, GA - Our Center for Investigative Action warned you about it. Remember those FEMA trailers that were used to house Katrina victims, then were pulled when high levels of formaldehyde were found? They ultimately were allowed back on the market, after the government assured us that there would be full disclosure whenever they were resold. However, we now know, that's not happening. <br /><br />53 year old Dan Hicks of Ellijay is now facing criminal charges accused of not being honest about what he was selling. <br /><br />Cynthia Palis of Central, South Carolina bought a trailer from Hicks in June for more than 5 grand and says she had no idea it was one of those trailers we had warned you about. <br /><br />She contacted us, after seeing our original story, asking for more information. We checked the vehicle identification number of her camper trailer against the Feds data base and learned the truth.<br /><br />"I'm pissed!" Palis said. "According to the person I bought it from, they had been camping in it and now his children had gone to college and they weren't camping in it anymore," she told us while sitting on the steps of her trailer, now parked in her yard.<br /><br />We learned the government had sold her trailer back to the public in January and then it was resold 5 times before being sold to her. Gilmer County Sheriff's Detective, Ryan Hilton investigated Palis's complaint and told us everyone down the line said they had disclosed it was a FEMA trailer, except Hicks. <br /><br /> <br /><br />"He's being charged with deceitful business practices which is a Georgia statute and also theft by deception, another Georgia Statute," Detective Hilton said. <br /><br /> <br /><br />"The trailer itself was conveyed to him as being a former FEMA trailer and he bought several of them from the same company." <br /><br />"So he knew?" I asked.<br /><br />"He knew. Absolutely." Detective Hilton responded.<br /><br /> <br /><br />We don't know what Hicks knew because he wouldn't talk to us.<br /><br /> <br /><br />According to charging documents, Hicks is also accused of misrepresenting the year of the trailer. <br /><br />Palis didn't get her money back but she's glad we have told her story. <br /><br />"I feel better but I'm still out my money, but if it can help other people from going through the same thing what we've gone through that would be great to me."<br />

I went to Jackson MS in March 2009 to look at units that were coming to auction. I went in and out of about 300 units. Most all of them had some form of water damage. Most of them had no roof vents. Some of the brand new never used units had life forms living in them like I have never seen. Well after that I thought if they could be bought for @ 2000 per unit that I might still be able to make some money. It turned out that most of those units sold for 5000 to 8000. They were bought by individual bidders during the online auction. I made my decision that day. I will not by a FEMA trailer for any price and I will not take one in trade. We all know the Katrina trailers were either 04,05 or 06s. So my advice is to not take them in trade and do not sell them. But do tell your prospects of the hidden dangers if they are considering one. Travel trailer buyers for the most part are either payment buyers or low price buyers. If they buy a FEMA trailer and need service we will still take their money. Plus the FEMA spec trailers have no tanks and they were bought new by the government for @ 6000.00 per. unit. Those trailers should be piled up and burnt then sold for scrap.

I think large posters describing this problem should be provided to every dealership in the country. Perhaps the folders could be funded out of the Go RVing money as a public service to unsuspecting consumers. This will also provide a level of protection for dealers when an irate customer comes in expecting service or a large trade-in on the FEMA trailers. This is another sad day for the RV industry and the damage it will bring on dealers, who always seem to be on the short end of situations like this.

I'm sure FEMA has a "butt" load of inventory, but (if I had to guess) I don't think RV "buyers" who are looking to spend $7000 or less on an RV are legitimate RV buyers anyway. RV's are luxury items. Some people don't have any (financial) business buying an RV. An RV for $7000 (in my experience thus far) is a rare item at a dealership. ALOT of these FEMA trailers will probably be parked and poorly maintenanced which will cause them to have problems. The owner will them buy RV repair services and/or parts. Good business for dealerships!

What is the liablity of Servicing one of these Units? Last month there were 3 of these units that caught Fire, one died. If an RV Dealership services one of these units, Does the Dealership take responsibility of the unit?

What is the liablity of Servicing one of these Units? Last month there were 3 of these units that caught Fire, one died. If an RV Dealership services one of these units, Does the Dealership take responsibility of the unit?

We were sold a fema Mobile Home in 2010. We were not advised that it was a formal FEMA Mobile Home, and told nothing about Formaldehyde in it. We were told that it had been tested and it passed. As we were signing the paper work to purchase it, the seller threw a peace of paper in to all the other papers, saying, "that we had to sign this and it was nothing more than what they had told us about the unit. As we signed it but before we could read it, the seller of this unit grabbed it and put it with the other papers that we had signed. We were buying it on a Contract for deed. They did tell us it was a fema Mobile Home or that it was bought at auction in Florida. We never thought anymore about it, but a few months later I had to have a cist removed from the cartage of my nose. John, my husband several month later from moving in, had to be put on oxygen 24/7 he went from 98% oxygen Level to 82% the doctors could not understand why his oxygen was doing so good, and then turned so fast. I have been in the hosp several time for bronchitis and pneumonia.<br />Our 4 year old daughter has had sever stomach pain. We reach out to everyone we knew but got no help. We found out that this is a Morgan Fleetwood Mobile Home and according to research we did, found out that it was one that was GSA/FEMA had sold. Later found it was at the auction, and GSA knew that this unit was never tested for anything! While at my daughters doctor one day, we told him about the Mobile Home being a FEMA unit. He wrote on a pad the instructions of my family not to take our daughter back to our home. He contracted the State Dept. of Health to have it tested! While living in a motel for one month while working the the State Dept. to test it. The day finaly came! With in one day of test the State Health Dept. told us that we have black mold and a Formaldehyde level of 150 ppm. The Health Department wants us to keep it at 72 year round, with the windows open! I am not living like this! My husband has developed colon cancer and my daughter still goes to the doctor on regular basis.<br /><br />I hope that no one else may have to go through what my family is having to!<br /><br />Sharon Stinson

We were sold a fema Mobile Home in 2010. We were not advised that it was a formal FEMA Mobile Home, and told nothing about Formaldehyde in it. We were told that it had been tested and it passed. As we were signing the paper work to purchase it, the seller threw a peace of paper in to all the other papers, saying, "that we had to sign this and it was nothing more than what they had told us about the unit. As we signed it but before we could read it, the seller of this unit grabbed it and put it with the other papers that we had signed. We were buying it on a Contract for deed. They did tell us it was a fema Mobile Home or that it was bought at auction in Florida. We never thought anymore about it, but a few months later I had to have a cist removed from the cartage of my nose. John, my husband several month later from moving in, had to be put on oxygen 24/7 he went from 98% oxygen Level to 82% the doctors could not understand why his oxygen was doing so good, and then turned so fast. I have been in the hosp several time for bronchitis and pneumonia.<br />Our 4 year old daughter has had sever stomach pain. We reach out to everyone we knew but got no help. We found out that this is a Morgan Fleetwood Mobile Home and according to research we did, found out that it was one that was GSA/FEMA had sold. Later found it was at the auction, and GSA knew that this unit was never tested for anything! While at my daughters doctor one day, we told him about the Mobile Home being a FEMA unit. He wrote on a pad the instructions of my family not to take our daughter back to our home. He contracted the State Dept. of Health to have it tested! While living in a motel for one month while working the the State Dept. to test it. The day finaly came! With in one day of test the State Health Dept. told us that we have black mold and a Formaldehyde level of 150 ppm. The Health Department wants us to keep it at 72 year round, with the windows open! I am not living like this! My husband has developed colon cancer and my daughter still goes to the doctor on regular basis.<br /><br />I hope that no one else may have to go through what my family is having to!<br /><br />Sharon Stinson

Any RV dealership working on a FEMA unit is assuming the same liability they would be if they were working on a unit sold from their lot. Garage-keepers liability does not/can not discriminate between the 2 units unless there is an exclusion in the policy for work completed on FEMA units. Just my two cents...