"Subject to" for MHs - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on March 17, 1999 at 21:32:53:

Dan,

Thanks for the info. Based on what you say, it sounds the concept of taking a MH “subject to” is nearly identical to the same with a house, except a different kind of trust is used. Perhaps I am getting ahead of myself, but still a couple of more questions.

How does the MH park management figure into the equasion. I talked to them today and they don’t mind letting me keep the MH in the park as long as they receive their rent. Since they have a “no tenants” policy I can’t lease the MH out, but they would not mind me selling it and putting a buyer in it, as long as that buyer qualifies for their lease. I have examined their lease agreement, and it appears there is a requirement to furnish a proof of title. Since there’s still a loan on the MH, the owner does not have a title but just the financing agreement. How do I prove I am the new owner ?

One other twist is that the MH was purchased in the name of the current owner’s husband, who is now deceased. She is nowhere on the paperwork, although she has lived in the MH from the very beginning and has been making payments herself for the last several months. Any ideas on how to make sure I get all the right papers signed, so that I’ll be able to receive and pass onto my buyer the title when the loan is eventually paid off or refinanced ? (I’ll be borrowing the Ernest Tew’s book from a friend until my order arrives; I hope to find some answers there).

The park manager also suggested that I visit the Texas Manifactured Home Assosication in search of rules, regulations and licensing. Seemed like a good idea to me.
Appreciate your time.

  • Alex

“Subject to” for MHs - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on March 15, 1999 at 17:07:47:

Probably a naive question. But, has anyone figured out how to take over payments on a MH financing “subject to”, similar to what we do with homes. This is not your typical Lonnie deal with “el cheapo” home you can buy for $2K. It’s about 5 yrs old with a financed balace of $31K in a nice MH park with newer homes.

I even have a buyer for something like that. I am getting so many calls like that and I have to pass since I don’t know what to do with them. I could immediately sell it with $2-3K down on wrap owner financing. But how do I buy it ?
What kind of paperwork do I need ?
Thanks much.

Re: “Subject to” for MHs - Posted by Dan Fink

Posted by Dan Fink on March 15, 1999 at 20:15:15:

You can "beat the due on sale clause " The same way Bill Bronchick does using trusts . Except Use a personal property trust for mobile homes not a land trust.

this works but be careful green tree and some other lenders look at trust a little more closly than regular banks.

I would l/o the home and have the home put into a trust then take the home subject to in a trust. On the payment book have the name and the address of the trustee put in the new address part, after the trustee gets the book you are safe in most cases to take the home subject to and do as you please L/O or wrap.

Dan Fink

Buy Earnest Tew’s Book - Posted by DougO(NM)

Posted by DougO(NM) on March 15, 1999 at 18:38:16:

Hi Alex
I bought Ernest’s book when it first came out, and while I was in Dallas i got the update. Boy was it worth it. He explains an excellent way to do just what you are wanting to do here, using a lease option. Get it.
Doug

Re: How To Get Rich Helping Others - Posted by Jackie in Dallas

Posted by Jackie in Dallas on March 15, 1999 at 18:30:56:

Alex,

You’ll find all the how-to’s for taking over a mobile home subject to PLUS a whole lot more in Ernest Tew’s book - “How To Get Rich Helping Others” - You can get a disk with all the forms for an additional $12 I think.

You’re right - I get 2 - 3 calls from people wanting me to take over payments on their mobile home for every “1” call I get fram a single family house owner. Often these are less than 12 months old and in perfect condition. HUGE opportunity!

Jackie

Re: “Subject to” for MHs - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on March 15, 1999 at 23:53:27:

Dan,
A couple of questions.
1)personal property trust - what kind of animal is it, and who of our on-site experts has the materials covering it ?

  1. I am a bit confused. You say “l/o the home and have the home put into a trust then take the home subject to in a trust”. In my understanding L/O and taking title subject to are 2 totally different transactions. It’s either one or the other, not both. Unless you are referring to a) first taking control with L/O, then b)submitting papers to a lender on transfer of MH into a trust (with sellers as beneficiary), then, c) after receiving a confirmation from lender, assigning sellers’ beneficial interest to me.

With regular homes I usually skip (a), do (b) & © at the same time, and later notify the lender of change of address. I don’t normally get a new coupon book, just mail payments to the lender with old coupons. I don’t always notify lender right away about the transfer into a trust.
Thanks for your help.

Re: How To Get Rich Helping Others - Posted by Lenny AusTX

Posted by Lenny AusTX on March 15, 1999 at 19:48:02:

Jackie-
How often do YOU do a MH subject-to/lo?
details?..

How often do you get to Austin?
Our RE group meets 1st&3rd Tues eves…we’ll buy dinner! mmmmmmm…austin food…

Re: “Subject to” for MHs - Posted by Dan Fink

Posted by Dan Fink on March 16, 1999 at 16:52:27:

Alex,

A personal property trust is like a land trust but set up to hold personal property not real property. Check with Broinchick he should have one or will be able to create one for you it is quite simple.

2 you are right they are 2 seprate things Use a l/o to tie it up now before they change their minds with a option price tied to the note balc. Then do the work to have everything put into a trust with you as trustee then tell the lender. this way you have control if there is a problem. MH lenders look at trusts a little harder then reg banks. Reason how many mh dwellers are guarding their estate? Not many. Have the benificial interest already assigned but keep it in your back pocket and tell the lender they are out of town on a extend stay and all cor. will be though you (the trustee) until further notice.

As far as new coupons thats up to you but in my mind once they send the coupons they give up all rights to protest the thing (hey you changed my payment book and name on the account you said it was all right then why not now )

Dan Fink

Re: “Subject to” for MHs - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on March 17, 1999 at 21:50:38:

Dan,

One other silly question is about the ownership transfer. With regular homes the owner just deeds a house to my trust. By virtue of doing it this way, even if there’s no “subject to” language in the warranty deed, it becomes a “subject to” deal. So the deed transfers the ownership of homes.

How does the seller of a MH transfer the ownership rights to the trust ? I suppose when the MH is paid for , the owner simply hands over the title certificate to a buyer. But what happens when there is still a loan against the MH ? I assume the lender holds the title certificate until the loan is paid in full. What single or multiple documents are used in this case to transfer the ownership right from a seller to the trust ? If I don’t figure this one, I guess, I won’t be buying any MHs.

Thanks again.

  • Alex