Andrew conducted an interview with the director of
Hobgoblins and
Hobgoblins 2, which you can and should read
here.
Hobgoblins is a bad movie, and I have not seen it non-MST3K'd. I also do not plan to watch the sequel. However, I admire Rick Sloane for plugging away at movie-making, especially on minuscule budgets and no support.
Hobgoblins is one of the more popular MST3K episodes, and most notable for being a very, very low-rated film. If Sloane can make some money off a sequel to his previous film, even twenty years later, more power to him.