Re: Sub2 Mobile Home - Posted by Joe C. (AR)
Posted by Joe C. (AR) on March 18, 2006 at 24:05:27:
1st… There are Personal Property Trusts and they are pretty much like land trusts. See Bronchick or Lou Brown’s stuff for info on them.
I have bought MH’s sub2 without using the trust. First I prepare a contract stating the terms of the sale,
xx number of payments of $xxx, made directly to the finance company etc.
Look at the financing contract or payment book to verify who the “owners” are. I get a notarized “durable, exclusive,limited power of attorney” from all the owners allowing me to conduct all business, on their behalf, related to the MH (ie. sell, lease, insure, move, collect funds related to financial transactions [insurance, rents etc.], sign the title to transfer ownership, deal with the finance co., insurance carrier, tax assessor et al.) I provide a copy of the POA to finance co. and insurance co. and notify them that I will be managing the property for the “owner” and to direct all future correspondence to the owners c/o me. When it’s paid off the title comes to me, and I can sign it for the owners transfering ownership to whoever I please.
I think in Ernest Tew’s book’s he uses lease options much the same way. Buy on a L/O sub2, sell on a L/O.
It can be done and I’ve had no problems doing what I’ve described. Just get full, “exclusive” authority up front, because you may not be able to find the seller later on.
Just my .02
Joe C. (AR)