Posted by Tony-VA on October 17, 2001 at 08:38:30:
Transfering title and registering title may be misunderstood. Most parks will require the Buyer to be registered as the owner on title. By registering them on title as the owner, we also distance ourselves from liability on that home.
We are listed on the title as the lienholder, and retain possession of the title until it is paid off.
This makes little difference when repossessing (as we do not foreclose personal property). As the lienholder, we simply return to the DMV and apply for a repo title. It cost $10 in Virginia and we are now once again listed as the owner.
We would still have to address eviction proceedings through the courts if the buyers have not left but this is unaffected by transfer of title in question.
Being the lienholder is what makes the repossession possible.
I do not wish for my company to remain listed as the owner on the title and have my buyer purchase the home from me while I hold the title (I suppose it would be a contract for title type scenario).
Since repossession as the lienholder is no more difficult, than why retain our name on title and assume the liability as the “owner”?
I have worked with investors who retain title in their name and they have all been burned to some degree by this procedure. I have seen the homes destroyed, go behind in lot rent and eventually up for Sheriiff sale, all the while the investors name is the one being dragged through the mud. Why risk this simply in the belief that repossession will be easier? There is not difference in (in VA at least).
I need help with my 1st Lonnie Deal - Posted by Todd (MN)
Posted by Todd (MN) on October 16, 2001 at 22:17:26:
I’m ready to do my 1st Lonnie Deal. After I purchase a mobile home and sell in owner financing to a new buyer who then retains the title? Myself or the new buyer? If it is the new buyer how do I get my name on the title as the secured party? What happens if the new owners stop making payments? Do I have to forclose like a bank?
Re: I need help with my 1st Lonnie Deal - Posted by Tony-VA
Posted by Tony-VA on October 16, 2001 at 23:46:47:
Hello Todd,
Education is the best prevention. You are on the right track. Posting here will help point you in the right direction. You have an idea on what you want to do, you now need a detailed road map on how to get there safely.
The questions you asked, and more, are all answered in Lonnie’s book “Deals On Wheels” which as you may know is available here for about $30.
To answer some of your questions, it will depend upon your state. If you state titles mobile homes like cars, through a Div. of Motor Vehicles, you register the buyer as the owner and you are listed as the lien holder. You retain the title (just like a bank) until the lien is satisfied. When it is, you sign the title signifying the lien has been paid and give the title to your buyer.
Each state (and locality for that matter) will differ on the exact procuders on Repossession so you will want to do a bit of homework. The good news is that since you are only selling personal property (as oppossed to Real Property) you will not need to go through foreclosure proceedings.
A few posts here can tweak your system but do not forgo getting the full education.