FEMA Trailer Sale

March 7, 2007

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Luisa Martucci

LITTLE ROCK, Ark. (AP) - FEMA is raising fears among mobile home dealers, now that the federal agency is auctioning off thousands of trailers that were used by victims of Hurricane Katrina -- and getting rid of them at fire-sale prices.

Mobile home dealers say the plan will flood the market and depress prices. Some are finding customers would rather wait to make a deal on a used FEMA trailer than pay, in some cases, 40-thousand dollars for a brand-new one.

A FEMA spokeswoman says the agency is now trying to reduce the number of trailers it is holding in reserve for the next disaster.

FEMA now has 60-thosuand trailers in storage nationwide, and several thousand were never used.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

AP-NY-03-07-07 1617EST

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