Overdue lot rent - Posted by Echo

Posted by Michael(KCMO) on April 23, 2007 at 12:40:58:

"In your scenario
who would be in possession of the title to this free and clear home? "

Could be either one. Being the control freak that I am I would prefer to hold title myself. But if tenants balked at the idea I don’t guess there’s any real need to. I’m guessing the preference over one way or another would vary from state to state according to state laws.

"What would you say to them."
Don’t need to say anything. Just have the DMV mail it to your office. Put it in their file. If they ask for it later . . . “Company policy requires us to hold the title in your file. This will ensure it doesn’t get lost and is always readily available when you sell.” This would also allow you to control the transaction and make sure you were brought current out of sale proceeds. Really, you could act as an escrow-type closing agent for the whole deal. That’s getting complicated, and I don’t know that I’d actually do it, but I’m just saying.

“Would this security interest have a dollar amount as Steve is
suggesting?”

That may vary by state as well (I dont know) but in MO there is no dollar amount recorded with the lien. Just a name and address as lienholder on front of title. Nowhere on the DMV paperwork does it ask for or show an amount.

"Has any park owners been doing this? "

That’s my question too. What do you park owners think? Pros? Cons?

Regards,
Michael(KCMO)

Overdue lot rent - Posted by Echo

Posted by Echo on April 20, 2007 at 10:27:45:

I have a question about over due lot rent. Lets say. I own the land and MH. The note has been paid on the MH , but they are late on the lot rent. Since I own the lot I go thru the eviction procedings. According to the Ga laws I’ve read I can charge them a storage fee on my lot, basicly a daily rate equal to what I was charging them. So thats good but still they don’t pay, then what? I really don’t want to have to move the home and I’m not so sure there’s anyone around here that would take it anyways for storage.
Also if the MH stays on my lot for storage, what can I do to stop them from coming and going into the MH? The local magistrate court is no help.

Re: Overdue lot rent - Posted by mike barlow

Posted by mike barlow on April 20, 2007 at 13:39:49:

I’m not sure what you are asking? Since you own the lot and the home
and once you get a writ of possession will not the Sheriff or magistrate
come out and lock them out? Once they are locked out by the sherrif
then you change the locks and take possession of the home and they
can not enter the home unless they want to go to jail. You are the
boss, the owner so take charge of this situation and exercise your legal
rights.

Re: Overdue lot rent - Posted by echo

Posted by echo on April 20, 2007 at 14:11:06:

This is a question, the above has not happened. The home would have already been paid for and the tenant owns it free and clear, I just own the lot. The lot rent would be past due.

Re: Overdue lot rent - Posted by mike barlow

Posted by mike barlow on April 20, 2007 at 15:16:01:

OK I get it; We evict for back lot rent and then we stipulate to the
Sheriff that we just want him to lock out the non-payors of their own
house and not to pull the house off the lot. Sheriff comes out and
locks them out and we change locks. We have never had anyone come
back and pay us for back lot rent or storage after they have been
locked out. After 30 days then we start the process of getting
abandoned home title with DMV. I hope this helps.

Re: Overdue lot rent - Posted by TeddyB_SC

Posted by TeddyB_SC on April 20, 2007 at 16:55:53:

I am curious as to what gives you the right to change the locks on a home you don’t own.

Thanks,
TedyB_SC

Re: Overdue lot rent - Posted by mike barlow

Posted by mike barlow on April 20, 2007 at 20:36:52:

The Law. Everything we do with evictions is handled by an attorney and it
is his counsel we are following. We are in constant touch with him to help
conform to the law all along the way. The Sheriff, when he has that
judgment for possession in his hand for us on the site, is very co-
operative in helping us. This may just be a local thing.

Re: Overdue lot rent - Posted by Michael(KCMO)

Posted by Michael(KCMO) on April 22, 2007 at 08:43:42:

Here’s something I’ve thought about that I wonder why more park owner’s don’t do: Why not have a clause in the lot lease granting a security interest (lien) in the mobile home. Have them sign all necessary state paperwork so this lien can be placed on the home, even if you only do it after they are out and owe money or abandon the home. Granted, this will only work on free-and-clear mh’s, but a repo would be a heck of a lot faster than the abandoned title process - especially in states with a non-judicial repossession statute.

In my pet park I see them going through the abandoned process on probably 1 home a month on average. That’s a lot of headache and time spent. I would think this way would be much simpler and have it filed away in the back of my mind for when I have a park(s) of my own. I’d like to hear other’s thoughts.

Thanks,
Michael(KCMO)

Re: Overdue lot rent - Posted by TeddyB_SC

Posted by TeddyB_SC on April 22, 2007 at 08:42:11:

Mike,

Yes, it may be a local thing. It seems to me that you are only a landlord over the lot, not the home and you would have no right to enter the home or change locks.

Obviously the people did not remove the home before the eviction date, therefore the Sheriff removes them from the property and if they return they will be trespassing. But the people still own the home until the point the bank repossesses it.

Do you change the locks to prevent them from returning and getting their belongings or from moving back in, even though they would arrested for trespassing. Once you evict them do you allow them to contact you to get any belongings they left behind?

Lot rent and late fees continue to accrue until the home is removed by them or the bank (and you are paid your lot rent and fees).

?After 30 days then we start the process of getting abandoned home title with DMV.?
At what point do you notify the lien holder that the people have been evicted and the bank is now responsible for monthly lot rent until they come and get their mobile home?

Thanks for your help,
TeddyB_SC

Re: Overdue lot rent - Posted by mike barlow

Posted by mike barlow on April 23, 2007 at 11:54:22:

I hear you the abandonment process is quite lengthy. In your scenario
who would be in possession of the title to this free and clear home?
Would you ask the new tenant for their title for the park to hold as you
would do if they owed money on it? What would you say to them. "we
are holding your title in case you ever decide to abandon your home."
Would this security interest have a dollar amount as Steve is
suggesting? Has any park owners been doing this?

in conjunction with sec dep - Posted by Steve-WA

Posted by Steve-WA on April 22, 2007 at 10:14:50:

figure out your states max for sec dep, and then charge a little below that, along with a lien for the remainder

good thinking - post this at MHU - more park people over there