Posted by Lyal on July 06, 2003 at 14:23:49:
My Contract is pretty detailed listing not paying rent, not obeying park rules etc as reasons for default as well as payment terms. I keep the title in my name until they pay me off. That way I can take the titles into my bank and drop them on my loan officer’s desk as collateral to borrow money (much cheaper than selling a note or partial). One reservation that has been expressed in the past is the possiblity of some level of liability because the title is in my name. My attorney isn’t concerned about it and it hasn’t been a problem to this point. Just to make it clear that it’s a SALE and I’m not a landlord, I include a “Document of Understanding” that we sign at closing that unequivocally states that “This is a purchase” yadda, yadda just to have something signed in the file that I can wave in their face if necessary.
All the best, Lyal