Posted by Ron_KS on March 02, 2002 at 18:44:35:
JR,
Ouch!!! You sound like you didn’t do all your home work.
I really don’t have the answer to your problem, only an idea maybe. You didn’t state (1), what year, size, shape, condition the MH is in. You didn’t mention the price you paid, the market in your area and the POTENTIAL of selling the MH where it is presently located.
Is there a reason you HAVE to move the MH or are you locating (hopefully) to a better park? These are just some of the things banging around in my squirell cage. First, a years back lot rent could be small or large, depending on certain factors. Where I live lot rent runs any where from about $150.00 a month to a really sharp park that charges $400.00 per month, so one would have to evaluate the profit on this MH including paying the back lot rent.
If your market is good, solid, and you have a few potential buyers that can handle the payments, make a deal (if at all possible) with the park manager to let the home remain, you sell, adding in the extra cost of the arrear lot rent, get a good down payment and let the new buyer pay it off. I fully understand and appreciate that not all of us (starting with ME) has cash to throw at a park manager for back lot rent, but as you are now the owner of this MH you have to face the reality that you could LOSE it at the raise of a bidding hand.
Talk with the park manager, attempt to make arrangements to pay two payments per month to catch up and even add in a small “late” fee of say 4% just for letting them allow you to pay this thing off in 6 months. You save the MH from going up for auction, you maybe can get it sold, recoup some of you money, build a good solid relationship with the park manager so you can do more deals and you will then come out a winner.
The only other recourse is to pay the back lot rent in full (sometimes hard to do - cash flow) and then either move it or sell it.
I know these are probably not the answers, but just an idea. I wish you all the luck on this one. Always, always, always check with the park manager’s and tax offices before you buy a MH to ascertain that it is free and clear of any and all incumbances.
Best regards,
Ron_KS