Posted by DougO(NM) on November 15, 1998 at 19:30:07:
1st: Need to know exactly how the home is currently titled. 2nd: Are you paying $7500 cash or terms this determines what you will do with your future tennant/buyer 3rd: If you are paying cash, then I feel the way to go for you and your tennant/buyer is what I outlined in the original post in this thread (contract for title held in escrow) 4th: If you are buying on terms, then basically what you are doing is the same, only you’ll have to be able to gurantee the buyer that you will be able to provide them title when they pay you off. This is where flipping could work, the buyer in effect steps into your purchase contract for a fee. You may consider just renting it for awhile if that is possible, then selling later. Hope this helps a bit. In any case, once you’ve determined the facts and have your plan in place, then by all means see an attorney to get the details down.
Doug
MH deals, what should happen with the title? - Posted by John (KS)
Posted by John (KS) on November 13, 1998 at 14:30:16:
As the lein holder, I have been holding the title. Should I have the new owner sign the title and give them a copy or not have them sign, in case they bail. What actually am I supposed to do with the title???
Re: MH deals, what should happen with the title? - Posted by DougO(NM)
Posted by DougO(NM) on November 14, 1998 at 09:47:49:
The idea of being the lien holder is that should something happen, you have no liability. However, I have found after doing numerous deals as outlined in the DOW books, that putting the buyer on title and holding it sometimes works, but more often than not it’s a pain in the butt to re-do the paperwork if they bail out. It’s important to think ahead and find out the procedure in your area to get the former buyers name off of the title and the new one onto it. Will you have to go through a foreclosure ? Does your state have a “change of equity” form that the old buyers could sign in case they bail, then the new buyer could sign it and you as lien holder approve it ? After giving it some thought, I came to the conclusion that the best way to handle it would be to title the home in the name of something that won’t keep changing. ( Your corp. if you are full time dealer, or perhaps a personal property trust if you are not) The entity then sells the MH to the buyer on a contract for title, and sets up the deal at an escrow company or bank. When the buyer pays it off, they get all the paperwork they need to transfer title. ( You’d have the entity sign the title, but not date it or fill in any info. You’d include a filled out but not dated bill of sale and any other paperwork required to transfer title. The sales agreement would state among other things that if they bail out, after proper notice to the buyer and escrow company, the seller has the right to resell the home to another buyer.) Now all that is needed it a new agreement, new bill of sale, etc. and we can do it again without having to constantly running down and changing the title and going through a foreclosure. Check with an attorney to be sure. Good Luck
Re: MH deals, what should happen with the title? - Posted by Dirk Roach
Posted by Dirk Roach on November 13, 1998 at 15:44:48:
Hi John, In Lonnie Scruggs book “Deals on Wheels” Chapter 8 covers the sales contract and gives a step by step of how he does it. Specifically page 89, 5th paragraph down, desribes the title question you posted above.
It seems that you would want it registered with the DMV or Registry (or whomever I’m not sure of the correct term for the office in the state of KS) who the owner is, for tax purposes and such.
Also:
Kansas Manufactured Housing Institute
112 SW 6th St…Suite 204
Topeka KS 66603
(913) 357-5256
May provide you with other specifics in reguards to KS law and regs and whatnot.
good luck,
Dirk
Doug - I have a similar question about a mobile home title. A friend of the family is being transferred in a couple months and is waiting on a potential buyer’s financing now. If this falls through - I would buy her house for the $7500. she still owes her father on it. I don’t know if this is a lender loan through a bank (she pays him) or if it is just a private loan. He paid off the house some time ago. I need to know if he has the title or did he let her have it with no lien listed. My question is - how can I get a tenant/buyer without may having the title in my possession? or should I structure it like a lease/option with the right to sublet to my tenant/buyer and just not have the title until I finish paying off the loan to her father? This is probably ABC stuff but I am a newby so please bear with me. I would like to do this deal if it becomes possible but I am worried about these problems. Help is appreciated. Thanks Doris