Garn-St. Germain and Mobiles - Posted by Phil-TX

Posted by Phil-TX on April 13, 2006 at 16:21:04:

Barry,

Thanks for your respone.

Phil

Garn-St. Germain and Mobiles - Posted by Phil-TX

Posted by Phil-TX on April 13, 2006 at 11:20:57:

The following was posted on the Legal Forum and I am submitting over here as well for input. Thanks!

Does Garn-St. Germain act apply to loans on personal property such as manufactured home? Situation: Mother dies, daughter inherits land and MH. MH financed separately from the land (will has been probated). Lender on MH says they don’t have to deal with daughter, she is just an occupant of the home. County records show the land and home are in daughters name, and Texas Manufactured Housing Division still show mother as owner. I realize daughter will have to submit necessary paperwork to the State to get her name on ownership records before she does a refinance into a land/home package. In case it is better for the daughter to continue making payments on the chattel loan my question is: can the chattel lender call the loan due or repo the home because of a change in ownership through the death of the mother? I will appreciate your response.
Thanks,

Phil

Re: Garn-St. Germain and Mobiles - Posted by Gary (TX)

Posted by Gary (TX) on April 13, 2006 at 21:43:02:

Phil,
Here is a form for the daughter to fill out and should transfer title to her name. Go to this site and look at Form C
http://www.tdhca.state.tx.us/mh/ownership-location.htm

Re: Garn-St. Germain and Mobiles - Posted by Barry (GA)

Posted by Barry (GA) on April 13, 2006 at 12:43:49:

http://www4.law.cornell.edu/uscode/html/uscode12/usc_sec_12_00001701---j003-.html

(a) Definitions
For the purpose of this section?

(3) the term ?real property loan? means a loan, mortgage, advance, or credit sale secured by a lien on real property, the stock allocated to a dwelling unit in a cooperative housing corporation, or a residential manufactured home, whether real or personal property; and

(4) the term ?residential manufactured home? means a manufactured home as defined in section 5402 (6) of title 42 which is used as a residence; and


(d) Exemption of specified transfers or dispositions
With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon?

(5) a transfer to a relative resulting from the death of a borrower;


From looking at the above I would say that she is protected, however I am not a lawyer so she should contact one to be sure.

Good investing,
Barry (GA)

Re: Garn-St. Germain and Mobiles - Posted by Phil-TX

Posted by Phil-TX on April 14, 2006 at 14:39:30:

Thanks Gary. How are things out in Lubbock?

You know, I called TDHCA two different times and got two different answers on handling this. The first person said the daughter could not get title until the lien is paid off. Technically, he was right, but I had in mind showing the daughter as owner, which is what is being sought. Hence, a Statement of Ownership or SOL form in addtion to Ownership and Location Affidavit Of Fact form sent along with a copy of the will is what the second person at TDHCA told me(and I concur). Since the will has been probated, Form C would not apply because it says "the deceased left no will; that no application for administration has been filed; that there is no necessity for an administration upon the estate… " etc.

I appreciate your input on this and your other contributions to this board as well.

Best regards,

Phil