Need help keeping my Cash Cow MH - Posted by Investorrob

Posted by investorrob on July 23, 2003 at 23:53:45:

Thanks for your reply see new post below Tim for more update.

I think she does have insurance—its just I did not get a confermation letter from the agent. We will know tomorrow for sure.

She is doing something that is very hard to do. Sell for all cash and below the limlt that a Lender will lend. So buyers will not be able to get a loan. An all cash buyer for single wides are few—we will see if she can get one. As most of us m h investors know Lenders will only lend $10.000 and up. So I feel like this deal will proceed as laid out in the Prommisory Note. With pay off to me in September. I will stay on top of this untill final payment is received.


Need help keeping my Cash Cow MH - Posted by Investorrob

Posted by Investorrob on July 22, 2003 at 18:21:43:

I have a current buyer that has signs up trying to sell the mobile home that I am holding a prommissory note on.

Here is the history behind this

I made a deal to take a portion of Stafford student loan payments they were getting. The mh was to be paid off by the end of July a total of $6500 When I got Junes payment they said that because of summer they would not get any more loan payments till September. I stated but did not put in writing aggreeing to this. I received notice from the insurance compay the middle of June, that the Insurance was unpaid. At the time I receives Junes payment I ask about insurance and was told by buyer “my mom will make payment to insurance company this week.” Which was at the end of June. or about 3 1/2 weeks ago Short story is No insurance now on mh.

I drove by the mh today and for sale signs are out.

here are the claws or teeth I have in the Promissory Note dealing with insurance and selling the moble home.

The note shall at the option of the note holder. be declared in default if any of the following occur

#5 Failure to pay required taxes and insurance premimums when due.”

Then this clause pertains to selling the mobile home.

“The note may be paid off at any time without penality, but cannot be assumed by another party with out written consent of Note Holder.”

The title is in our name and does not show the buyer on title in anyway.

Ok here is where I want answers from you that have delt with something like this in your mh investing. What would you do to the buyer???

I will not let the buyer collect the monies left owing me. To clear me from the deal----meaning I won’t hand over the title.— The buyer did not ask to sell the mobile home first before putting up signs as is clearly stated in the note I hold.

Thanks in advance.


Re: Need help keeping my Cash Cow MH - Posted by Jim Schad

Posted by Jim Schad on July 23, 2003 at 14:36:12:

If they can’t come up with the money and just want out tell them you will release them from the contract if they just leave and leave all items intact. Then just resell the home on terms again.

I don’t understand why you don’t want them to sell the home and pay you off? YOu get your money that way right?

Re: Need help keeping my Cash Cow MH - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on July 23, 2003 at 06:31:35:

I see nowhere in your note that says the homeowner can’t sell the mobile home. All it says is that the note can’t be assumed without the note holder’s written consent. The MH owner is not trying to get someone to assume the note payments. They are trying to sell the home. If you get the balance of the note paid to you, why does it matter that they are selling the MH?

It seems to me that you aren’t being fair here at all. You want the buyer to default so you can get the property back. That is not the way this works. If the buyer pays you off, you have to sign over the title. That is the only ethical thing to do.

The title is another issue. If your name is still on the title, I sure hope noone gets injured around the MH, because they will sue you. You are the owner of record on the MH. You are liable, not the MH buyer, since you never transferred title.

If you really want the property back, the lack of insurance is your only course. You can declare the note in default and demand payment in full. You should give the buyer some time to come up with the cash or to get insurance. Maybe 2 weeks would be reasonable. Make sure you send all notices in writing.

Re: Need help keeping my Cash Cow MH - Posted by Anne_ND

Posted by Anne_ND on July 22, 2003 at 20:52:06:


I’m trying to understand- are these sellers just one payment away from owning the MH? Is it a balloon payment?

Please clarify.


Tim a cooler head will prevail - Posted by investorrob

Posted by investorrob on July 23, 2003 at 23:36:18:

Tim after cooling off and re- reading that section of the note I now agree with you and will let her sell if she can.

I talked to her tonight and found she wants to sell all cash. If she sells before September she will cash me out. Other wise I get the amout due for pay off in September.

However insurance is another story. She said mom paid it a couple weeks ago. Will check on that first thing tomorrow with the agent. If paid its a closed case. If not paid I told her I would be right over tomorrow to get to the bottem of it all.

This is the second buyer i have put into the mobile home. and I thought this mobile just might keep giving and giving again payments that would drive my yeild throught the roof. Oh well as it is have done great on it.


Re: Need help keeping my Cash Cow MH - Posted by investorrob

Posted by investorrob on July 22, 2003 at 21:35:03:

Hi Anne

Yes was to be one last payment of $1700.00 I have in the back of my head that the buyers thinks they will be able to find a new buyer to come up with this amout to give me. Or the total amount of the buyers asking price of $6750.00 And pay me off-----the amount they owe me. Something I really don’t want to happen. I will no longer take any thing less than the full $1700 but only from the orginal buyer.

I want to see what others here would do. For now I am thinking of serving a default letter because of no insurance.

I can see a big fight coming up and am thinking of putting on a policy of my own to cover anything they might try to pull while in default. They hauled the old kitchen stove away and bought a brand new one 3 months ago—can see where they might get it in there head the stove is theres and dosn’t belong in the mh when they leave. Or I might have to remove them in Augest, or even September if pad rent is not paid. So looking for some answers


Re: Need help keeping my Cash Cow MH - Posted by Anne_ND

Posted by Anne_ND on July 23, 2003 at 09:24:11:


I recently sold a house (stick-built, not MH) on Contract for Deed and the buyer had to get his own insurance. We gave him 30 days to do so because of extenuating circumstances, we carried our insurance on the house in the meantime and he paid us for it. So the house was covered and we were the only loss payees.

Well he took longer than 30 days and always had a good reason for it- we were still covered so I didn’t press too hard. Finally I sent him a firm letter, copied my attorney on it, saying he was in violation of the terms of the Contract and he had 2 weeks to take care of the problem. He did so.

In your case, I’d get your own insurance on the house NOW. Then I’d pursue getting the buyers out of the house. Send them a letter saying they’d violated the terms of their agreement for sale with you. Get your attorney involved so that you do this properly.

Realize that if the buyer does sell the house in the next few days or weeks, and is able to pay you off, then the house is gone.

Personally I’d try to work with them and take smaller payments over a few more months to keep them in the house and get it sold. Furthermore if you do get the house back, I wouldn’t keep the new stove unless they wanted to leave it, but I’d make them at least provide a replacement for the old stove. In your situation you got a lot of money out of the house AND got it back (hopefully in good condition), so forget the new stove unless they offer it as compensation for your trouble.

I’m not an attorney.