Here is how the SCAM works. - Posted by Craig Whisler CA N?V
Posted by Craig Whisler CA N?V on September 08, 2003 at 10:04:06:
Alfred, there are no special conditions required. In most states, as a park owner, you will have automatic lien rights for space rent. You just hold a routine lien sale of the mobile home right in your park. After the sale you turn in a report to your licening authority, be it the DMV, DOH or whatever, and they just issue you a new title, the same as with cars. If you really want to get the mobile you should wait until the total space rent owed you is just high enough to discourage other buyers, or you put in a phoney bid and change it after the others bidders leave (as is common in California), or you inform every bidder that the mobile can’t remain in the park after the sale. This will have the effect of chilling the bidding because it effectively raises the cost (to any outside bidders—but not to you because you won’t have to move it) by the amount of money that it would cost to have it moved and set up again (probably $2k-3k depending on if it is a single or doublewide). If you really want to act like a California park owner you inform all bidders in advance that the mobile has to be moved within 72 hours of the sale or the buyer will lose it AND all of his money.
A footnote about the phoney bid so you will understand how the scam works. I know that I don’t always explain things so clearly: If the minimum bid amount(for space rent and sale costs) is low for such a nice mobile there may be one or more other people who bid more than the minimum amount, if you haven’t taken any of the above (ILLEGAL) steps to discourage bidding. If there are any overbids the amount over the minimum must be returned to the person who lost the home just as with forclosures. Lets say for example that the minium bid is 3k. That is the amount owed to the park for back space rent plus the sale cost. Say it is a nice new double wide and someone bids 7k, then to protect itself and to win, the park owner of his manager bids 8k. The park wins. Everyone goes home. The park manager fills out his paperwork and states that the winning bid was 3k. Noone is any the wiser because the other bidders never see this paperwork. The park gets it for the minimum amount owed and the park manager gets rewarded instead of going to jail. The poor guy who lost his home gets screwed out of the $5k overbid. He is just some poor schmuck who doesn’t even know that he has been robbed.
Sometimes it seems there is no justice in this world. Such corruption is absolutely rampant in California parks.