it’s called a “quit claim deed”. Not used for transfer of title to a mobile home (personal property) which is transferred by title as is an automobile. Some state laws may vary.
A quit claim deed simply stated; you give up your interest in real property, if any, to another. As an exmple, I quit claim all of my interest in Trump Towers to WindyCityRuss.
Since I have no interest, neither do you… although I used a “quit claim deed” as a legal instrument and can do so (since I don’t own any interest) in a legally recorded document.
Now, an entity could own the home and have one of it’s officers live in the unit (tenant/buyer for example) although that party has zero interest in the entity. In short, you can be the president or officer of a corporation and not own one single share of stock.
I ran an ad last week that ran 7 days. I got about 15 calls (I lost 5 because of a power outtage and my phone batteries were dead). Almost ALL OF THEM were from people whose loans were upside down - the loan balance was far greater than the book value of the home. I would like to help the sellers get rid of their mhs with L/O’s, but how can the new buyer finance when the home is not even worth what I need to charge to make any kind of profit? Am I missing something here, or should I really forget about helping this kind of problem? I can’t buy the homes cash - they are usually $10K and up.
Any insight would be greatly appreciated. Thanks to Lonnie and Ernest for all the help they have given me in the past.
I also found out something interesting from running my ad. The ad reads “We buy and lease houses and mobile homes…” ALL the responses were from mh owners!! no stickbuilt homeowners!!!
Posted by Blane (MI) on March 23, 2001 at 07:26:41:
Debra,
Generally speaking those upside down deals aren’t going to be worthwhile. Any profit would likely be skinny and not worth the worry, given the cash flow we can make from other deals.
Maybe Karl or someone who is doing L/O’s can show you how to make a profit (L/O’s aren’t allowed in my area), but I don’t see it happening on the upside down deals. IMHO, pass on those.
Re: Have you ever had this problem? - Posted by John/Indiana
Posted by John/Indiana on March 23, 2001 at 02:55:28:
Debra,sounds like business is great for you! While i’ve not experienced this,I have met many mh owners who can’t sell because no one will finance their buyers,and they owe more than proprty is valued at.Myself,I’d pass.Since the payoffs are more than value of mh’s,seems like a hard uphill climb.Unless you could make enough off the L/O’s to make it worth the headache…How did the L/O you had going last week work out,was it worth doing? I have to admt,i’ve not done one yet.John.
Posted by Blane (MI) on March 23, 2001 at 13:29:58:
Hey David,
Maybe what I should say is that haven’t found a park in my area yet that will allow L/O’s. Homeowner must be on title. Even parks where I have good relationships won’t allow it. Given that, maybe there’s one around that will. I just haven’t found it yet.
Re: Allow me to rephrase… - Posted by WindyCityRuss
Posted by WindyCityRuss on March 26, 2001 at 15:48:35:
I’m hardly an expert so this is more of a question than a answer to your problem. But couldn’t you use Quick Quit deed (maybe not the actual name) a 1% ownership to your tenants. This way they would technically be an owner and side step the the parks regulations of Owner Occupancy? When they leave you just dissolve the deed.