Posted by Carlene (Maine) on June 01, 2001 at 09:10:08:
Thank you for your input. I actually just talked with the park owner this morning. I know I am not legally responsible, but ethically I want to be supportive if possible. I am in a small town and just starting my business. I want to be a reputable business woman. However, I have let her know that at this point my hands are tied legally, unless the flake has done something to put the home in jeapordy.
I told her she needs to provide concrete evidence and then I would have my attorney review it to see if there is any angle that we can help get her out. We don’t want to appear disinterested in this whole matter. (Furthermore, the park manager is my Handyman for other MHs so I see him regularly.)
The flake is 21, doing drugs, entertaining multiple men, and job hopping. (The kind you bring home to mother) (She had a stable job when I sold her the home and had good references…needless to say I was duped) We’ve talked to her many times and she assures us she is going to pay…lie…then she even said the park owner refused payment…lie.
The Park Owner already knows I will pay back lot rent IF/When she gets evicted…
Did I mention the very uncomfortable frost bite?
A question for the experienced… - Posted by Carlene (Maine)
Posted by Carlene (Maine) on June 01, 2001 at 06:43:20:
I am finding myself in a situation that I think I could use some help with…:
I sold a MH to a 21 year old flake. (Of course she sold herself to me in the beginning but now her true colors are bleeding through.) She fell behind on payments to me as well as lot rent. The park owner and I have been talking. She not only hasn’t been paying me or the lot rent but has also broken about every rule she could in the park…(including sun bathing in the nude…I’m not sure if that was a park rule or not, but it was frowned upon…guess it wasn’t pretty.)
My attorney sent her a letter informing her that she had until a certain date to pay what she owed us in full or we would call the note.
The DAY it was due she paid us but NOT the park owner. I’m happy because I got more money out of her. But now I’m stuck in a hard place with the park owner. There is nothing I can do legally to get her out.
The park owner was expecting us to take back possession of the home so she could get her out of there. Up to the point when she paid, we were advising the flake to turn the home back over to us and we wouldn’t report it on her credit.
I have been trying to play both sides of the field here. I have been trying to maintain a positive relationship with the flake and the park owner. I’ve told the flake that she needs to pay the lot rent. The park owner has made her decision and will not change her mind about kicking her out.
In fact, she won’t accept the lot rent.
Any thoughts here. I know this isn’t MY problem, but I REALLY want to maintain a good relationship with this park owner. She actually called me to come and work in her park in the beginning.
(Lonnie, I’m going to have to pass on the skydiving thing in June…but it isn’t out of the question some day!..)
Re: A question for the experienced… - Posted by Tony-VA
Posted by Tony-VA on June 09, 2001 at 14:31:25:
This question is one that is actually multifacited.
On one hand we want to maintain a good rapport with the park. We want them to look to us to solve problems.
However, we don’t want the park manager to get complacent and not do their job and evict THEIR bad tenants. We also don’t want them to think that they need not evict tennants because we will be responsible for the back lot rent.
I have had to have a good sit down chat a couple of times to remind parks that I do offer them greater assistance than my competitors, however, this is not to be an excuse for them not to act upon their obligations in a timely manner. If someone owes them money, the need to act.
I explained it this way. “Mr. PM, I have someone that is not paying me and I would like for you to evict them for me so I can sell it again. I realize they are making their payments to you but please help anyway.”
The PM said, I can’t help. They are current with me.
Exactly I said.
Now let’s work together and get this deadbeat out and get a good tennant in.
They agreed to act quickly on their end and I did the same on my end.
Lastly, consider a 3 party agreement between you, your buyer and the park. Have an attorney draw this up. Essentially you want it to stipulate that since you are responsible for a portion (or whatever you state law reads) of the back lot rent upon the buyer’s failure to pay the lot rent. You all agree that in the event the buyer stops paying lot rent, you will essentially step into the lease and evict them via normal tenant eviction laws. Your attorney will have to draft this to fit your goals and state laws but I do believe it to be an effective tool. Take this idea and bend it to fit your scenario.
Re: A question for the experienced… - Posted by Chuck-NY
Posted by Chuck-NY on June 05, 2001 at 18:41:01:
I was able to reposses a MH (and obtain a judgment)
via New York eviction laws. I showed the judge a
paper that was from the park stating that I was the
guarantor of the lot rent and that the MH occupant
was behind in her lot rent and my MH loan.
The judge awarded me possession & judgment based
upon the letter and the fact that the people never
showed up in court. I know this is different
but I thought it might give you some ideas.
I don’t always recommend getting the lot rent from
the buyer and then paying the park, but to a certain
degree it has its advantages. You need to weigh the
costs of either small claims proceedings or how much
you are going to allow yourself to be obligated for back lot rent…and also…how long does your PM
plan on waiting till they start eviction proceedings?
I take it you got your U.C.C. questions answered.
Re: A question for the experienced… - Posted by Blane (MI)
Posted by Blane (MI) on June 05, 2001 at 07:10:15:
If you’re using Lonnie’s promissory note, it should show as one of the ways to default not complying with all park rules. Not paying on time definitely falls under that. If your note does have it, I’d send her a 3-day notice (or 5 or whatever) saying she is in violation of her agreement. If she doesn’t pay up the park in full and keep it that way, she’s in default and will owe YOU the entire balance. Then you have grounds to evict her.
Sorry, it’s too early in the morning to think of anything witty about the nude sunbathing, other than including in your letter that farm animals (cows or pigs) aren’t allowed in the park.
Helping get rid of this wacko will only make things better with the PM. Good luck and keep us posted.
Re: A question for the experienced… - Posted by Ron_KS
Posted by Ron_KS on June 01, 2001 at 18:20:11:
Looks as though you and I are having about the same problem, i.e., mine doesn’t sun bathe and I am thankful for that, I just don’t think the “old geezer” is that good looking.
Seriously, my problem is that my buyer continues to pay me my monthly payment, however, he hasn’t paid a nickle on his lot rent. I was unaware of this until I CALLED THE PARK MANAGER. I had ask them to notify me if and when the owner missed a payment - he is now four months behind and guess what, I told the park manager I would stand good for the back lot rent ($800). I want to continue to work this particular park, it’s good, the homes are good, and I am having my attorney working on some sort of deal wherein I can get this dead beat off my books and resell the MH.
My contract is being revamped to include the lot rent as a condition of taking the MH back. Wish I would have thought of it in the first place.
Anyway, good luck, let us know how it works out, okay.
Hindsight and a contract change… - Posted by Andy - OH
Posted by Andy - OH on June 01, 2001 at 09:07:36:
Carlene - Hindsight is a wonderful teacher. Not sure, but it sounds as though you are now without grounds for getting the flake OUT. My partner and I recognized the virtue of addressing a situation like yours in the contract we sign with them. Our notes with our buyers indicate that their failure to keep lot rents current to the park, is a violation of the note and as such, may trigger repossession. Although this obviously won’t help in THIS situation, you may want to consider adding this caveat to future notes…letting the PM know that you’re adding this, may also help maintain a postitive ONGOING relationship with him/her. The more we, as investors, help PM’s in their objectives, the better off we all are in the long run.
As for the nude sunbathing…must hand it to you…don’t think I’ve seen that particular situation come up on this board before, and not to sound like a prude, but I’ve got to believe there are likely some public decency laws being violated, which may make the case of the PM somewhat easier.
Re: A question for the experienced… - Posted by David (OH)
Posted by David (OH) on June 01, 2001 at 08:23:18:
Sorry to add this after my initial reply.
Maybe is it time to be creative. Don’t know what the lady owes in lot rent. Maybe you could get the lady to leave if you agree to catch up the back lot rent and save her credit from a judgement. If the lady would agree to this, you could negotiate a discounted lot rent with the PM. This way, you have a little bit or money, the PM has a little bit money, the tenant avoided a credit problem, and most importantly, the tenant is out of everyone hair. You all can move on to a new tenant/owner with hopefully fewer headaches.
Do you know why the tenant is not paying? Lack of money or financial irresponsibility?
Re: A question for the experienced… - Posted by David (OH)
Posted by David (OH) on June 01, 2001 at 08:07:47:
A PM once told me that this is a common game people play. In his park, tenants would pay lot rent but not on the MH note (ususaly with a big bank). This flustrated the bank because it meant that they had to follow through with their own lawyers. They wanted the park to pay the expense of evicting. The PM thought it was sort of funny. But your relationship with your PM is not like it is with a bank and PM, so it is not funny for you.
In your case, I think you have done your part. If your PM is trying to make you feel bad, they are taking advantage of your relationship. By all means, encourage the lady to pay lot rent and mention that she can get evicted by the park if she does not pay. Put on the pressure. But legally, the park must initiate the eviction for non payment of lot rent.
Is there any way that the park can make the investor responsible for lot rent if the tenant does not pay? This way, I would think that the investor could then evict the tenant? I dont think I would volunteer this information to a PM though. It could cause further problems later. Really the PM should be willing to run their business correctly and take care of their responsibilities. Likewise, if the situation was turned around and the lot rent was current but the note was deliquent, I would say that you need to run your business correctly and take care of the problem. Maybe you could refer the PM to your lawyer and go with the PM for a visit to the lawyer. This may smooth things over.
BTW, can you sun bath nude in Maine this time of year? Sounds cold to me.