CA MH Note--Deed of Trust?? - Posted by Kristine-CA

Posted by Tony-VA/NC on August 30, 2003 at 17:22:59:

As far as land/home packages, I agree that this is quite common, in fact many banks require it. It allows the lender to foreclose in one action instead of foreclosing on the land and filing a separate suit to repossess the home.

I can see the advantages for the lender and the buyer but I am not certain that there is an advantage for the investor/seller.

I prefer to keep the title separate from the Deed so that in time I can sell the home off separately and retain the land for a long term, passive income investment.


CA MH Note–Deed of Trust?? - Posted by Kristine-CA

Posted by Kristine-CA on August 25, 2003 at 24:01:36:

Greetings all. I’m wondering what the typical way (if there is a typical way) is to do owner financing for mhs in CA. Can you secure an mh with a deed of trust? Or, is there another way of securing the note that is more typical?

Thanks. Sincerely, Kristine

Re: CA MH Note–Deed of Trust?? - Posted by Tony-VA/NC

Posted by Tony-VA/NC on August 25, 2003 at 18:55:03:


Deeds of Trust are used to secure a note on Real Estate. Mobile homes that are not a part of the real estate, are personal property and as such, the Deed of Trust would not apply.

Typically the home will be registered with a title just like a car is. I don’t know how CA does it but if not a title, then you would look into the Uniform Commercial Code (UCC-1 for instance) to secure the note.


Re: CA MH Note–Deed of Trust?? - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on August 27, 2003 at 14:15:56:

We title through the Department of Housing (HCD) rather than DMV, although some exceptions exist.

Tony’s answer is the ‘standard’ correct one as to the use of trust deeds in california. 99.999 % of people questioned will follow it but Jim Cox, my first mentor, and california attorney, often secured mobile homes that were personal property by TDs. He said he had to educate EVERY title company officer he did business with and I suspect that even then many didn’t believe him. I can find no prohibitions in the law against using TDs, where real property AND mobile homes appear in the same deed and TD, but it is suggested that you follow Tonys’s model.

If you use the DOH, I doubt that a UCC filing is necesssary because like the DMV, the DOH has provisions in their documents for lienholders protection. Even though cars are personal property, we use the DMV to register them and to protect lender’s interests rather the use UCC filings.

Though I don’t know for sure I suspect that UCC filings with the Secretary of State (in CA) are more commonly used more for things like machinery and equipment, than cars or mobile homes.

Regards, doc

Re: CA MH Note–Deed of Trust?? - Posted by Tony-VA/NC

Posted by Tony-VA/NC on August 28, 2003 at 17:10:52:


I am not sure I am reading your post correctly.

If you are stating that a mobile home can be included in the Deed of Trust with the land, I totally agree. Many times, mortgage companies lending on land/home packages will require that the title be “retired” and the home become a part of the real estate and from then on trasferred via Deed. Their loan will be secured by the Deed of Trust at that point but I don’t see how this would work (or the benefits of so doing) in a park not owned by the investor.

Are you intending to file it with the county clerk? How would they accept this?

Are you not creating a Rube Goldberg apparatus? Making things more complicated than necessary. Insurance companies, taxing agencies, your future buyers etc. would all be expecting a lienholder to hold a Title. What is gainged by your using some creative Deed of Trust?


Not for mobile home parks… - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on August 30, 2003 at 13:37:02:

…I keep thinking from my own perspective. I prefer private land and mobile deals.

Recording is done at the County Recorder’s office in my state. I guess that is the counterpart of the County Clerk’s office in other jurisdictions.

I, myself, haven’t created anything. It already existed long before I came along. The law applies to everyone, include uncle Rube, I guess.

It doesn’t complicate things. Quite the contrary, it simplifies things by using one title instead of two (land deed and mobile home title). Either way lien holders hold title, its just that my way there is only one title, one registration fee and ONE place to look for lender’s interests, which incidentally is the SAME place that one would look for other types of liens such as real estate tax liens, income tax liens, mechanics’s liens, or lis pendens notices, etc (to wit: the County Recorder’s Office). It really simplifies the whole process and reduces costs too.

Thanks for your comments Tony. They point up the fact that I need to be more specific when I am discussing something that pertains only to mobiles on private land vs. mobiles in parks.

Regards, doc