Sub2 Mobile Home - Posted by Kevin - WA

Posted by ashain on March 17, 2006 at 13:01:10:

Hello,

I have taken a mobilehome sub-2 before. My question to you is how does a mobile home in a park have equity? If it has an addon to it then the warranty is probibly void. You will want to treat the mobile like a car. Is the tag, tax and insurance up to date? Not a real big difference in paperwork other than having a bill of sale. You also might be holding on to this mobile for a while since it is a depreciating asset and it might be difficult to get your buyer to refi if at all. Hope any of this helps.

Sub2 Mobile Home - Posted by Kevin - WA

Posted by Kevin - WA on March 17, 2006 at 11:19:56:

Hi,

I have an opportunity to take a mobile home in park Sub2.

The owner had to leave the state, and has a buyer (seller finance) but does not have the ability to manage. He is willing to let us take it over Sub2, about $9K in equity, and owner-finance his buyer.

My question is: how do I do this? I have taken 5-6 properties Sub2, so I understand that concept. But since a mobile home is personal property, there are going to be some differences in forms. For example, I would not use a Land Trust here…but is there another way to avoid a DOS clause?

Thanks in advance,

K

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)

Problems in WA - Posted by John Merchant

Posted by John Merchant on March 17, 2006 at 22:23:41:

MH lenders that I know of are not amenable or friendly toward sub-to buyers, and once they learn their debtor has tried to sell without paying them, they repo the MH.

You realize you cannot transfer the title in WA with a lien on it?

I’d recommend you keep looking.