Welcome back,
In today’s Mobile Home Investing Lesson Podcast episode #28, I’m proud to welcome active mobile home investor Mohammad to the co-hosting microphone. In today’s 50-minute podcast episode we dive deep into examples both real and hypothetical when it comes dealing with liens and loans on mobile home titles. Learn from our mistakes and successes when it comes to helping sellers and profiting with mobile homes that have current or outstanding liens.
I am super proud of everything Mo has accomplished in such a short period of time. Mo has already been able to help multiple mobile home sellers, buyers, park managers and owners in his local area. Mo has no plans of slowing down.
A Special Thanks to Mo for opening up his business and being so candid on today’s podcast to help other investors he’ll never meet.
Disclaimer: You may have to rewind this podcast a few times to understand everything. During today’s podcast we jump into some real and hypothetical examples seen in the real world. Some of us are visual learners so the fact that we are not able to see anything on the podcast may make it a bit confusing for you to absorb 100% of everything the first time you listen. Don’t hesitate to rewind and make sure you understand things clearly. If you have any follow-up questions never hesitate to comment below or email me directly.
In the podcast episode below we cover:
✔ 3:05 Hidden liens with a mobile home on private land story
✔ 8:13 Mo’s 3 take-away lessons from the Hidden lien story
✔ 10:00 Mo’s mobile home lien story and how he overcame hurdles to close successfully.
✔ 17:47 Removing a lien from a closed bank on a Texas Title (SOL)
✔ 24:52 Liens remaining on Titles without the owner’s knowledge
✔ 27:01 Caring for your seller more than the deal.
✔ 28:42 Discussing a hypothetical situation if the mobile home’s lien was not truly satisfied and moving forward.
✔ 30:12 Discussing paying off different mobile home lien scenarios.
✔ 43:30 Discussing a hypothetical situation where getting clear title was not possible.
✔ 48:48 Discussing some selling strategies and prices for Mo’s properties.
How to deal with liens in real life while investing in mobile homes?
Let’s face it, if you are investing in mobile homes then you will eventually run into a mobile home where the seller still owes money on the mobile home. This may happen to you sooner than later.
✔ A. Understand who holds the loan: Sometimes the seller may be owner financing the home from the previous owner, or directly from the mobile home park, or from a local financing company, or nationwide financing company, or bank, or even a family member or friend. Some of these lenders are more friendly, flexible, organized, and/or forgiving than others.
✔ B. Understand the realistic resale potential: It is important to first know your local market and what buyers are paying for mobile homes both cash and with a down payment and monthly payments. You want to know your realistic exit strategies because it is important to give every seller educated and realistic solutions that help them moving forward. Does the seller owe more money than the home is worth? Are you able to make a purchase offer or offers on this home? Can you give the seller additional information they may be able to use to sell the home themselves if you are not interested?
✔ C. Things you also want to verify, but we are not talking about on this lesson: Repairs, age, ownership, local supply, time vacant, foundation, time of the year, park policies, condition, application criteria, demand, etc.
✔ D. Understand how much the seller has left to pay off: Do the sellers owe over $30,000 on their mobile home? Under $30,000? Under $20,000? Under $10,000?
Do you have the cash to pay off this seller’s loan?
Yes. I have the cash to pay off the seller’s loan.
In these situations, it is important to…
✔ Call the seller’s lender on a three-way phone conversation or using an Authorization to Release Mortgage Information form to allow you to ask questions about the protocol after you are able to pay off the seller’s lien. Will there be a new title printed and mailed? With the seller’s permission can this title(s) be mailed to your business address? Will there be an electronic notice sent to the state there by allowing the seller to have a new title printed immediately? What will be the turnaround time after the loan payoff be? Additionally, you also want to find out the payoff total and any fees associated with this process. Ask if there is any way to expedite this process.
✔ Now that you understand the seller’s payoff numbers, you also know how much money you will be paying to the seller on top of this loan payoff total, if any. Perhaps you are not paying the seller any extra capital, or perhaps you are paying a few thousand dollars.
✔ It is important to mention that by this time you should be park approved if this home is located inside of a pre-existing mobile home community, and you should also know very clearly what you are buying with regards to the condition of the mobile home you plan on purchasing. It is ideal to know your process and procedures moving forward before holding the home, making any needed repairs, and marketing the home for buyer or renter.
✔ At this point you want strong paperwork/power of attorneys in place or the help of an escrow office or real estate attorney. Now is the time to have the seller sell/sign all transfer paperwork. This can be signed prior to or at the same time as the loan being paid off by you. Paperwork and closing procedures very state-by-state, however, make sure all transfer paperwork is signed (click here for your state’s step-by-step closing procedure) as if you were fully paying off the home that day. Withhold any money you are planning on giving directly to the seller. If utilizing the help of an escrow office or real estate attorney, you as the investor will hand over the money due to the seller to this neutral third party. Additionally, any new titles mailed from the lender should go directly to this neutral third party as well. Once everything is received a switch can be done and everyone walks away happy. If an attorney is not used, make sure to keep in communication with the bank and seller regularly. Additionally, always make sure to have proper paperwork that protects you, your sellers, and buyers.
Disclaimer: Even if you have all the cash to pay off the sellers underlying loan, this does not mean the deal is a good one or will be profitable. It is important to know your realistic numbers and not base any decisions off of emotions.
No. I do not have the cash to pay off the seller’s loan, but I can find the money.
Whenever borrowing money it may be ideal to get this debt paid off sooner rather than later. This encourages your lender to continue lending you money and should help keep your interest costs to a minimum.
✔ Follow the same steps 1-4 as listed above.
No. I do not have the cash to pay off the seller’s loan and I cannot find the money. (Semi- advanced strategy)
In this situation, because you don’t have or want to use cash to pay off the underlying debt, you will have to either 1.) Give the seller some helpful advice and walk away, 2.) Aim to wholesale the property to a buyer that does have cash if the deal makes sense, or 3.) Think more creatively about how you may purchase/control this property to help out the seller and create value while selling or renting the home moving forward.
Disclaimer: The following 1-5 bullets below outline one course of action. Depending on the mobile home seller, the payoff, the bank, the local park, the resale value, supply and demand, etc, more things may likely change a bit.
With that said, let’s discuss option #3 (from above) a little more in detail…
The strategy: Control the mobile home. Immediately sell for cash or (more likely) rent the mobile home and slowly pay off the underlying loan. Once the home is paid off you will then transfer the ownership into your name, trust, or company. At this point you may continue renting or selling the home.
Related video: Lost mobile home titles and other common title issues
Risks: Even with proper paperwork, safety guards, and procedures this strategy allows for your seller, the borrower on the note, to call up the bank prior to you paying off the home, and let the bank know they will be paying off the home immediately and would like the title(s) to be sent to them. At this point they will have the title and could sell the home to someone else. Author’s note: As described in today’s podcast, this is a possibility however has never happened in any situation I have been a part of first-hand or secondhand. With proper paperwork your risks are minimized. It is important to deal with sellers that are ethical and simply want to move on with their lives and are looking for help moving forward.
Personal property or Real property: When purchasing a mobile home located inside a pre-existing mobile home park you will not be able to transfer ownership/title until the underlying lien is paid for (in most cases). However, if you are purchasing a mobile home legally attached/married to private land that you will also be buying, then you may likely purchase the mobile home and land’s deed subject to the underlying loan. In these cases, you still want to get a power of attorney in the event titles are being held by the bank and will be released upon the note’s satisfaction.
✔ It is ideal to add yourself as an authorized user on the account. This may be done verbally by calling the lender with the borrower directly or by emailing/faxing in an Authorization to Release Mortgage Information form. Understand the loan payoff, interest rate, whether this is a fixed or adjustable rate note, if insurance is escrowed monthly, if taxes are escrowed monthly, if the loan is current or past due, etc.
✔ If the mobile home is located inside a pre-existing mobile home park then it is important to verify the park allows renting or does not need to see proof ownership has transferred from one party to another when you purchase the mobile home. If the mobile home is located on private land you will also be purchasing than you will not need to confirm with any community manager in most cases.
✔ If inside a park, understand that until you own the home free-and-clear, you should consider only renting the home to a low-risk renter. It is unwise to sell a home when you are not technically the owner just yet.
✔ Understand the paperwork and procedure you will be using moving forward. It may be wise to get all closing and transfer paperwork signed immediately when you take the keys from the seller and hand them any equity they will receive from you directly. Other forms to protect yourself such as an outline of the deal, CYA letters, power of attorneys, purchase and sale agreements, and even audio and videos of closing to show the seller and buyer both understand exactly what is happening and are of sound judgment.
✔ Once you have taken control of the mobile home, you may proceed to immediately sell it for a cash profit and pay off the sellers underlying loan or rent the home long-term and continue making the monthly payments on the underlying note. Tip: Aim to add as much capital to each monthly payment to get the note paid off sooner rather than later. Tip: Renting the home may be wise as you will not be able to transfer title until the loan is paid in full. Additionally, if the borrower does come back to pay off the loan and resell to another buyer to deceive you (as mentioned in the risk section above), you will be able to give your renters a short notice to leave the home. This is better than agreeing to resell the home as the tenant-buyer inside the home making monthly payments who will be very upset when they learn they are no longer able to purchase the home they have been making payments towards.
The title says there is a lien but the seller promises the home is paid off.
In today’s podcast we cover this exact situation. However, Mo’s example is just one situation. In reality there are many if/then type examples leading to a number of situations, people involved, options, solutions, and paths you may take moving forward.
While these are not all of the steps that you may need (since situations vary from opportunity to opportunity) please see the outline below when a seller tells you their loan has been satisfied, even though an active loan is showing on the Title, or the Title is still held by the lender, or showing a lien through a state website.
- Understand the seller situation and listen to the story he/she discusses with you concerning the subject mobile home and the lien(s).
- Aim to view and take pictures of any payoff statements or payment coupons showing the lien was paid in full or close to being paid off. Aim to call the current bank, loan servicer, or lender to ask them directly whether this lien was paid in full or if money is still owed. If the loan was paid off many years ago and the current lender has gone out of business, track down who bought this lender’s assets and aim to call this company to learn more about the seller’s lien.
- Also, call your states manufactured housing titling department and mentioned that you are a private buyer who is trying to purchase a mobile home from a private seller inside of a pre-existing mobile home park or attached to private land. Let them know the situation you are facing and tell them that you want to make sure there are no hidden liens, and all taxes are current. Provide the clerk over the phone with the mobile home’s HUD number, serial number, or VIN.
- If the original mobile home lender has gone out of business and you are unable to track down the bank or lender that purchased the original lender, ask your state’s manufactured housing titling department what the proper and quickest procedure is for the current owner’s lien to be released. In every state there is a process for the state to remove a lien without a title or loan payoff being provided. In some states this is done in front of a judge, or with the bonded title, or providing a letter from the lien holder, or by providing a semi-chain of ownership, or providing other forms that verify the current owner’s interest in the specific mobile home. The more you know about this process the more you will be able to educate sellers and help them moving forward whether you ultimately purchase the home or not.
Mini Lesson: HUD Tags
A mobile home’s HUD tag is a small metal plate that is riveted into the exterior rear-lower-side of the home. This plate has a certification label number stamped into it. A mobile home’s HUD plate may also be called a HUD tag, construction code label, certification label, or HUD label.
These HUD labels should be installed on every rear section of every mobile home built since 1976. Contact your states mobile home titling department if yours is missing.
This metal tag has 3 letters and 6 numbers stamped into it. The first 3 letters usually correspond to the origin state, builder, or organization that helped build the home.
Mo’s persistence
In today’s podcast I do not do a good enough job praising Mohammed for his determination and persistence to overcome obstacles. The world is a fairly negative place sometimes. We need to be our own #1 cheerleader. There are so times when Mo could’ve simply given up and decided to do something more fun/comfortable, but he continues to push through to make offers, close deals, and help others.
“The harder it is to do the deal, the less competition there is for the deal.”
Mo’s quote from today’s podcast
Related video: Mobile home investor transitional vulnerability
In conclusion every mobile home opportunity is a unique property. Every mobile home seller and buyer is typically in a unique situation. There are usually no cookie-cutter approaches or purchase offers to make with mobile home sellers. It is best to fully understand exactly what you are making an offer on, buying, who you are working with, and the correct steps needed to safely move forward in any win-win transactions.
Listen to John and Mo’s podcast here…
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25 Comments
Dennis Caler
April 17, 2019I am grateful that I found your website. I’m hoping you can help with a similar title problem on my mobile home. I have been purchasing a mobile home that I bought with seller financing payments from the previous owner. I have been paying on time every month and now he is saying he cannot find the title and will only give me a Bill of sale. When I called to ask the titling department what was needed she informed me that the owner of the home is a woman and not the name of the man selling me the home. My home is currently in a park in Va. The owner of this park recently told everyone that titles of homes must be in each of our names. I do not know what to do because I will need the title to transfer the home into my name. Any help is greatly appreciated.
Dennis Caler
John Fedro
April 18, 2019Hi Dennis,
Thank you for reaching out and connecting. I do hope that this podcast and post was somewhat helpful to thus far. Thank you for the detailed message as a certainly does help me understand your situation better and help point you in the right direction moving forward. First things first, great job tracking down all the information that you already did. Secondly, it definitely sounds like the man selling you this home has been taking advantage of you by omitting certain facts or being very ignorant or fraudulent himself. I’m curious if the mobile home park manager or park owner knows who this gentleman is? Have they dealt with this gentleman in the past? Is he been living in the property at any time? Additionally, does the park owner/manager know who the true owner of this home is… The woman you mentioned after talking to the state? These would all be very good things to know. I’m curious if the gentleman who is “pretending to sell you the home” is willing to do it needs to be done in order to transfer title to, or is he just looking to pass the problem off to you. I would drop the hand that you have no problem getting an attorney if you cannot come to a reasonable decision and figure out how to get title into your name correctly and legally. The gentleman who you have been paying is trying to sell you something that he definitely does not own. Many judges and attorneys would absolutely see this is fraud and you may be in the right to try to get all or some of your money back. With that said you could probably get the title in your name however you may need to either track down the woman on title, if she is local and you are able to find her. Or you may be able to pay for a bonded title or go in front of a judge to prove that you have been living in the home for a long enough time to transfer title over to without the true owner signature. I’m curious also if taxes have been paid over the past number of years while you have been living in the home? A yearly tax bill should be mailed to the owner and this should be paid every year. There are definitely some unanswered questions and it is important to get them figured out in order to understand the best way to move forward quickly, legally, and without fighting with your “so-called seller”. This is a pretty quick email reply however I do hope that it point you in the right direction moving forward. I would be upfront and honest with the park manager/owner and let them know what is going on and that you have been taken advantage of but are trying to remedy the situation. In all reality they may be able to help as they could file for an abandoned title to get the ownership in the park’s name to then transfer over to you. You may have to pay this fee for the park to file for an abandoned title or place a lien on the home to then repossess, however this is definitely one way forward if the park is willing to help. Again, this point you in the right direction. As always, if you ever have any follow-up questions or concerns now or moving forward never hesitate to reach out any time. All the best. Keep in touch.
Talk soon,
John
Tonya
September 11, 2022I bought my mobile home from my landlord and I tried to get a first time mortgage and it didn’t work because it had a lein on it what do I do
John Fedro
October 3, 2022Hi Tonya,
Thank you very much for reaching out and connecting. I very much regret to hear about the situation. My first question is definitely, whose name or what company name is holding the current lien? If there is a lien on the mobile home that I’m assuming that the ownership was not truly transferred into your name. This means that you do not technically own the mobile home, but perhaps only have a purchase agreement and/or bill of sale of some kind. I would definitely get in touch with the person that sold you the mobile home to get to the bottom of the situation. If you bought this mobile home believing that it was free and clear, without liens, then you may be able to have an attorney send the seller some type of letter or pursue them legally for this lien amount. However, perhaps the lien has already been paid and is satisfied. It just is not show this way on the current title. Again, gaining clarity from the person you bought the mobile home from will be very important. I hope this helps and point you in the right direction. Once you find out more information please feel free to reach back out anytime.
Talk soon,
John
Tom
April 27, 2019I bought a mobile home 12 yes ago only to find out the original owner has lein against the title what do I do.
John Fedro
April 27, 2019Hi Tom,
Thank you for reaching out and connecting. I very much regret to hear about the situation that you are in. Clearly the original owner/seller was not upfront and honest with you or very ignorant about their situation in general. With that said I’m assuming that there was some sort of payment program as you did not receive clear title day #1 when you first moved in. I’m curious if you been able to find out who the lender is and how much is owed? Perhaps if this is a small amount you would be able to pay off the underlying note, however the ownership would still be in the current owners/previous sellers name. If you had a power of attorney that was valid for all these years than perhaps you could sign on the owner’s behalf, however this is probably not likely. With all that said, the bank/lender holding the note probably will not give you any information as you are not the one on the file. Unless perhaps it is a private individual that is the noteholder. If this were the case you may be able to reach out to them by looking up their name and address or contact information to give them a call personally. If you do know where the seller/borrower is that would be ideal to get them involved to help figure out the situation, figure out the underlying note information, and resolve this moving forward. If this underlying note is able to be paid off then depending on the state, you may be able to still transfer title into your control with proper proof that you agree to purchase this home 12 years ago. A bill of sale or other supporting documents that the seller sold the home to you back then would be helpful as well. It looks as if you may be writing from North Carolina. If this is the case then you want to reach out to the local DMV to explain your situation and find out the proper steps moving forward. With all the advice I gave above the answer to your question really is, it depends. There are number of ways forward and things will definitely get a bit more complicated before they get easier, however I very much encourage you to push forward and track down the information you need. Reach out to the DMV and explain your situation and provide the VIN or serial number for your mobile home if possible. I do not want to give you any wrong or misleading information so I would rather have you here and answer directly from the state. These folks should be able to help point you in the right direction moving forward. I hope this helps and makes sense. Moving forward if you have any follow-up questions or concerns now or moving forward never hesitate to reach out any time.
Talk soon,
John
Phi Huynh
January 23, 2021I was never told the mobile had a lien on it through a third party broker …I put 7,000 down on it—-the previous owner are still paying for the house while I been living in it he’s lied to both of about a lot of things and previous owner has been behind on house payment do I have to pay lot rent or is their bank responsible for this I no longer want this home anymore
John Fedro
January 27, 2021Hi Phi,
Thank you for reaching out and connecting. I very much regret to hear about your situation. It absolutely sounds like you were lied to and misled from the very beginning. The person you bought the home from should have disclosed that there was an underlying loan. They definitely did not set you up for success. You may want to speak with a real estate attorney if possible. A real estate attorney will be able to give you more of your options with regards to going after this person to try to collect back some of your $7000 when you moved into the home. I’m not sure how much communication you are in with the seller or third-party broker however will be important to ask them how you make it out of this transaction seeing is not everything was disclosed to you. Once you know if the third-party broker or seller is going to let you walk away easily or not, then you can decide the next move forward. Feel free to write back at that time or with any follow-up questions or concerns that you ever have. Keep in touch.
Talk soon,
John
Evelyn
May 13, 2019Hi, I’m currently selling my mobile home, of course a cash offer will be best, but I have a current buyer that is interested and has been approved for a loan to be able to purchase the home. How can I go about accepting his offer, what are the steps? Can you please guide me. What kind of contract can we sign, I’m scared of handing over the title after receiving a check and then the check doesn’t have the funds.
John Fedro
May 13, 2019Hi Evelyn,
Thank you for reaching out and connecting. Please see my thoughts below in bold.
I’m currently selling my mobile home, of course a cash offer will be best, but I have a current buyer that is interested and has been approved for a loan to be able to purchase the home. Congratulations! There is definitely a process involved moving forward, and this certainly could fall through, however congratulations on getting someone interested. I hope that you are happy with the price. How can I go about accepting his offer, what are the steps? You’ll want to take a good faith deposit as well as have a purchase and sale agreement signed. This purchase and sale agreement can be something you write up yourself or have an attorney draft that outlines the closing time, location, price, terms, penalties, deadlines, etc. Bank process may take around 45 days, so make sure you negotiate who is paying for the park lot rent during this time. I would also encourage you to make sure you speak with the bank as well to verify the funding date and information still needed by the bank. The reason I mention this last sentence is because some potential-buyer’s will string you along when they aren’t really moving that fast getting funded.Can you please guide me. What kind of contract can we sign, I’m scared of handing over the title after receiving a check and then the check doesn’t have the funds. I would encourage you to call around to a handful of title companies, escrow offices, or closing attorneys to see if they may help facilitate this transaction to make sure everything is on the up and up. You are certainly correct in thinking that people could give you a false check when you hand over title to some fraudulent people. I hope this helps some and starts to point you in the right direction moving forward. Moving forward if you have any follow-up questions never hesitate to reach out any time.
Talk soon,
John
Kendra
July 28, 2019I’m in the process of buying my first mhp through seller financing. Problem is the seller has about 30 mobile homes he bought from a closing park in a different state. All of the titles are in the old individual owners names and were never signed over to the sellers. He’s had most of them for 10 years or more. Renting them out in his mobile home park. Can he legally sell me a mobile home park with 80% not in his name?
He has all the titles and some of them have Liens and second liens some liens from banks. Can I even buy insurance on a park with 80% of mobile homes not in my name? The land is owned by seller free and clear and will be transferred into my name. Also the seller does a lot of bartering with his tenants so he doesn’t claim on taxes all money received. I went around with him personally to collect rents to make sure he receives what he claimed to even though it didn’t show on his taxes. The park is way below market value and that’s why I’m still in the game. Traditional funding said no because he shows a loss on his taxes due to bartering. He doesn’t have a utility bill to show proof of utilities paid. He’s very old and often acts like he’s overwhelmed and unorganized and just can’t find the utility bills I ask for. Any advice would be greatly appreciated.
John Fedro
July 31, 2019Hi Kendra,
Thank you for reaching out and connecting. Please see my thoughts below in bold.
I’m in the process of buying my first mhp through seller financing. Problem is the seller has about 30 mobile homes he bought from a closing park in a different state. All of the titles are in the old individual owners names and were never signed over to the sellers. He’s had most of them for 10 years or more. Renting them out in his mobile home park. Can he legally sell me a mobile home park with 80% not in his name? First things first, great job getting this park under contract and getting this far. Whether or not you close on this one, this is just one park of many more to come. No, he technically cannot legally sell you these homes since he is not the owner. With that said he can certainly make an argument that he is giving you “something of value” and that you will have possession of these homes to do with them as you see fit. In reality nobody is coming to get these homes from you anytime soon. No one probably knows that they are there.
He has all the titles and some of them have Liens and second liens some liens from banks. Can I even buy insurance on a park with 80% of mobile homes not in my name? It’s funny how things like this happen. There are number of different reasons why he could have all of these mobile homes and titles, however you have to deal with the issue now. I’m curious if the homes are in decent condition. If they are than by all means keep them and continuing renting them out or perhaps give them to someone else with a Bill of sale. Of course this would not be selling the mobile home to the buyer but rather only giving them a Bill of sale. Because of the liens being on the home it definitely sounds like an uphill battle to get these homes changed into your name. With that said it is not impossible. Depending on your state, there is a procedure to obtain clear title when in situations like this. Keep in mind that if money is still owed on the mobile home and the liens are valid than these liens would have to be paid prior to the titles being transferred. However, if the banks in question have gone out of business than there may very likely be a way the state will allow you to transfer the ownership into your control after proving the bank is closed down and there is no further lien and you clearly own the land the home sits on. The land is owned by seller free and clear and will be transferred into my name. Also the seller does a lot of bartering with his tenants so he doesn’t claim on taxes all money received. I went around with him personally to collect rents to make sure he receives what he claimed to even though it didn’t show on his taxes. The park is way below market value and that’s why I’m still in the game. Traditional funding said no because he shows a loss on his taxes due to bartering. He doesn’t have a utility bill to show proof of utilities paid. He’s very old and often acts like he’s overwhelmed and unorganized and just can’t find the utility bills I ask for. Any advice would be greatly appreciated. It sounds like you are getting a potentially very good deal. Great job working with this gentleman and helping them to the situation. In some ways I very much like his style. Out my thoughts above help some. Moving forward if you have any follow-up questions never hesitate to reach out any time. All the best. Keep in touch. Great job again with this potential community.
Talk soon,
John
Nathan
September 22, 2019Hi John,
I love your site and am getting fired up to do some deals in my area. Question, I heard on one of your videos that you have a questionnaire/script for sellers. Do you also have a script for sellers to knew tenant buyers on payments?
Thanks,
Nathan
SLC, UT
Nathan
September 22, 2019Sorry…
Script for selling to new tenant buyers
John Fedro
September 25, 2019Hi Nathan,
Thank you for reaching out and connecting. Additionally thank you for the kind words. I did used to provide a handful of documents free for the general public. What I found is that over time folks did not know how to use these forms, or confused about where to file them, how to use them, and when to use them. For this reason I no longer give these forms out for free any longer. To provide them to folks I’m working with however it comes with one-on-one instructions and how to videos and more. With that said please know that moving forward I’m happy to help answer any mobile home related questions for you whether you are a member of this mentoring/training or not. You are certainly in a decent and unique area of the country when it comes to this business. With that said there certainly are a good number of parks and around your local area. Moving forward if you have any follow-up questions never hesitate to reach out any time. All the best.
Talk soon,
John
Barbara
January 5, 2021Hi there
I sold my mobile home 6 months ago in Texas..(me) owner financed. Im the lien holder on title. Now the buyer said he thinking of selling home,since he still owes 20,000 can he sell the home with me being lien holder? Who do I need to talk to to get help in regards to my situation.
John Fedro
January 14, 2021Hi Barbara,
Very good to hear from you. Congratulations with regards to selling this home. Understood about you becoming the lienholder. In my opinion you have a few different ways to move forward. You may charge a nominal $200 or so fee to transfer the lien information from one person to another. As the lienholder you must do this or the current owner will not be able to transfer title successfully. You may also demand that the remaining principal balance be paid in full upon the sale. The choice is yours. If you’re receiving a good interest rate on the financing and would like to keep taking payments that I’m sure the buyer can find someone that wants to continue making payments. If selling for cash and you will have a nice payday. I hope that this helps and makes sense. If you have any follow-up questions or I missed something never hesitate to reach out any time.
Talk soon,
John
Amanda
May 19, 2021We just accepted a cash offer on our mobile home, but still owe a bank a remaining balance. We were told all we need is to make a bill of sale and get the payoff amount from the bank. Then the buyer makes a check out to the bank and one for us with the remaining balance from the sale made out to us. Is this true? I don’t think we need an attorney present.
John Fedro
May 28, 2021Hi Amanda,
Thank you for reaching out and connecting. Additionally, thank you for your detailed comment as the certainly does help me understand your situation a bit better. Congratulations with regards to accepting a cash offer to sell your current mobile home. I would very much and urge you to call up the bank to receive a payoff amount and also understand what their protocol/procedure is once they receive funds through bank wire. Once this loan is paid off the bank will either typically send a satisfaction letter to you in the mail so that you may bring this to your states mobile home titling department to remove the lien on the current title. You will then receive a copy of the current title with you as the owner and no liens listed. At this point you can then transfer the “free and clear title” to your buyer. Keep in mind that things will vary from state to state as times to receive new titles varies and some states allow you to process multiple transactions at once so you do not have to wait for the first title to come in before selling it to the next party. However I am unsure of exactly what state you are located in. For this reason would first encourage you to contact the bank to understand the process for payoff. Perhaps they have an electronic payoff system that automatically alerts the state that the lien has been removed. This way you may go down to your states title transferring department and simply order a new title without a lien on this. Your question about needing an attorney present will vary depending on the buyer you are working with. Some buyers will not trust to pay off your banknote without receiving a title that same day. However some buyers will certainly understand, especially if you include them in the call to the bank so that they understand the process as well. Some buyers may want to use a third-party attorney to make sure everything is done as agreed to. Create a purchase and sale contract as well that spells out all of the steps needed from both parties prior to moving forward. I hope that this helps some and point you in the right direction moving forward. If you have any follow-up questions never hesitate to reach out any time. All the best.
Talk soon,
John
Machelle Bates
December 12, 2021I have a question about a mobile home I have recently owner financed to someone. Does anyone know how I can get questioned answered. Thank u
John Fedro
December 14, 2021Hi Machelle,
Thanks for reaching out and connecting. Feel free to ask any follow-up questions. Happy to help answer some if possible.
Talk soon,
John
Yassie
May 21, 2022Hi. I am in the process of buying my first mobile home, cash deal. Owner tells me she still owes the bank (is that what is call a Lien?)
She says that at the time of the closing we will both go to the banl where I will make the payment and then the bank will issue me the title. Is that correct? I dont want to wait fornthe seller to give me the title later, I rather get it same day I handle the full payment. Writing you from Florida. Thank you in advance
John Fedro
May 25, 2022Hi Yassie,
Thank you very much for reaching out and connecting. As a mobile home investor this is definitely something that we deal with on a semi regular basis. Some mobile homes do have underlying liens were money is owed to the bank, owed to a park, or ode to a friend or family member. Either way there is a lien typically recorded on the mobile home title itself. Additionally, while there is a lien and place normally the bank will hold the title to the mobile home. If you are an investor and we were working together I would ask you a couple dozen questions with regards to this opportunity, the bank, their payoff procedure, the seller, etc. However since I’m not able to ask you so many questions I do not want to give you any wrong or misleading information. I would very much encourage you to obtain a local real estate attorney that is experienced with mobile homes. If you are not able to do this, or not willing to do this, then you want to make sure that when the lien is paid off the satisfaction letter and title are sent to you. You may also want to make sure you have all the documentation including a power of attorney to protect yourself in case the seller leaves before the satisfaction or title can be delivered to you. You may want to call the bank together with the seller or go there personally to make sure that the payoff address is sent to you when they mail the title or satisfaction letter out. Additionally, if the seller is receiving any profit I would not pay any of this until you receive clear title. However as soon as you go to the bank to pay off the sellers underlying bank loan, you should receive keys and possession and occupancy of the mobile home. I hope this helps and all make sense. Moving forward if you have any follow-up questions about this or anything else never hesitate to reach out anytime. All the best.
Talk soon,
John
Sherry
August 3, 2022Hello John, I have a rather unique situation. My elderly Mother bought a double wide with land several years ago. She recently attempted to sell the mobile home and land to a flipper. The buyer/flipper’s lawyer did a title search and found that the mobile home has another person’s name as title holder. This person owned the home originally and is 3 owner’s back. The original owner/title holder is now deceased. To make matters worse, there is a lien on the mobile home by a company that no longer exists, Greentree Financial. Any ideas or suggestions would be greatly appreciated. We are all in limbo at this time. Thank you, Sherry
John Fedro
August 4, 2022Hi Sherry,
Thank you for reaching out and connecting. Thank you for your detailed question as this certainly does help me understand your situation a bit better. It looks like you may be commenting from the state of North Carolina. Every state has a bit of a different process for this situation. Some states have no process at all really. Besides going to court and having a judge order the state to print a new title, if even possible. However as the landowner you should be able to file for an abandoned title as well. You’ll want to contact the Department of Motor Vehicles in your county and aim to speak with someone that has been there for a a while. A letter can typically be sent certified to the address of Greentree and it will be returned as proof that the company is out of business. Please double check what I am saying and make sure to explain the complete situation to the clerk at the DMV’s office. The situation has definitely happened before and it will continue to happen moving forward unfortunately. With that said you are the landholder and do hold many of the cards as the property is on your land. I hope this helps and point you in the right direction. Moving forward if you have any follow-up questions or comments please never hesitate to reach out any time. All the best.
Talk soon,
John
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