I have a trailer in my park that the owner wants out of. I recently bought the park one year ago, and so banks wont include my park income.
What would be the main points I would need to state in a contract between me and the seller, if I were to assume the loan and pay it off. In doing so, I will have to do about $2000 worth of work, so how do I draw up the contract so that when the loan is satisfied that I will receive the title?
As the owner of the park you do have a different perspective on keeping a lot filled and so you may be willing to pay more than a Lonnie dealer would.
Normally I would say that if you have to assume payments and pay $2k for repairs you are likely paying way, way too much. But since your motivation is likely focused on keeping lots filled I can see how you may view the numbers differently and not wish to take the risk of having someone else buy the home and move it.
If you decide to move forward with this deal then you need to be working directly with the lienholder. You will need to find out what you need to do to make certain that once the note is paid off that you (and not the current owner) will receive title. Otherwise the lienholder will accept payments until is is paid off, sign the title release and mail it to the old owner!
You will need the seller’s assistance to make this happen. There may be forms to consider (power of attorney) that will allow you to sign for the seller in the event the seller moves and problems with the title occur down the road.
Tony
[QUOTE=rvdsid;882145]I have a trailer in my park that the owner wants out of. I recently bought the park one year ago, and so banks wont include my park income.
What would be the main points I would need to state in a contract between me and the seller, if I were to assume the loan and pay it off. In doing so, I will have to do about $2000 worth of work, so how do I draw up the contract so that when the loan is satisfied that I will receive the title?[/QUOTE]
sid,
I’ve done this twice. You must sit down with the seller and make a phone call to the lienholder together. The seller will tell them he/she wants you to be put on the file as a person they can release information to. The seller then tells them to mail the title(when paid off) to your address. Get all lienholder contact information for yourself. Get correct address where seller sends payments to. Have 2 powers of attorney (one is extra in case you need it for something unexpected) ready for seller to sign with a notary present so that you can put the title into your name when it comes in the mail.
Your credit does not matter as the title and lien stays in seller’s name until paid off.
You will have trouble “selling” this home until you actually get the title. You could rent it or lease-option it with the lease period lasting as long as the payoff period.
I can’t stand not having control over the title for very long, so I pay it off as soon as I gather some money from other sources. Your mileage may vary.
Steve