Has anyone done MH's "subject to"? - Posted by Rick-MI

Posted by David on June 07, 2000 at 22:04:15:

Just thought I would drop you a line I am in the MH business in Texas and my good friend bought a 1998 16x80 loaded for $16000 just today. Feel free to contact me if you would like to talk about the business.

David Holliday

Has anyone done MH’s “subject to”? - Posted by Rick-MI

Posted by Rick-MI on June 07, 2000 at 21:21:26:

Hi everyone,

I just found a motivated seller with a 1988 Redman 14x80, 3/2, that needs a little work. She is 2 months behind on lot rent and payments, and house is vacant. She is open to a lease option, but PM may not allow it. I am interested in trying a “subject to” offer, but having never done one, I don’t know if it is possible to do in a MH in a park.

She needs approx. $1100 to bring things current, which I can do, but I need to know how to get this deal done.

All help is greatly appreciated.


Yes, BUT… (long) - Posted by Brandi_TX

Posted by Brandi_TX on June 08, 2000 at 24:27:27:

…never again. The only reason I even considered it, was the fact that I had a buyer with 2k in hand that I was going to assign the contract to and walk away. Here is how it went.

Lady calls with a 4 year old MH in a park. I get the owners story. I get the loan info (lender, payoff, payments, rate, insurance binder included, if so - how many years, etc). I get the home info (Make, model, how many soft spots in the floor, what leaks, etc).

I call the park, I will be selling it on payments, I ask, can this house stay? Sure no problem.

I call the lender. What is your procedure for requesting a payoff? (They all seem to have their own hoops to jump through.) What are the costs and procedures for taking over someone else’s loan - both with them staying liable and releasing them of liability. (Them staying on is cheaper.)

At approx. 5 pm on a Friday, I get -

A bill of sale for this ladies house,

A seller’s disclosure form stating and restating that they understand they will still be liable for the loan.

2 POA’s so I can transfer title when the loan is paid off (one filled in with my name/co. and another one left blank for my buyer.),

and an Auth to release info so I can request the payoff and verify the rest of the loan info.

I showed the house to my buyer at 6:30 that same night - decided for a multitude of reasons not to sign the sale that night. One being that I hadn’t had the POA’s notarized, so there was still a possibility of something going wrong.

I contacted the seller to resign the POA’s the next morning. She dodges my calls all weekend.

Come Monday morning I find out why… this woman is a bandit. The loan balance is way higher than she stated, AND she was behind in her payments when she had signed stating she was current. (Like I wouldn’t ever find out?) SHEESH - So, I waltz into her office later that morning with a letter of termination.

It gets “better”.

Her only response is, “Oh, That’s OK, I already sold it to someone I know over the weekend.”

ARGH - I could have slapped her. All I can say is thank God I hadn’t taken any money from my buyers.

Lol, I just realized how long winded this post is, but that - in a nutshell - was my MH subject to deal. Sad thing is this: Before I even attempted this deal, I had sworn never to do ANYTHING involving MH’s ever again. I used to sell them at a dealership, and I have a low tolerance for the typical customer.

This woman, bless her heart, just recommitted me to my sworn statement. Just be careful, check and RE-check everything… and do not consider it “a done deal” until in fact, it is one.