Evicting for lapse of insurance - Posted by Steven Hilbon

Posted by Todd(AZ) on January 09, 2009 at 16:40:39:

The above point cannot be emphasised enough! I’ve been rock solid in communicating my expectations for timely home payments from the very first home I ever sold. And, the rare time a payment has been late its one quick phone call (only) AND “Late Fee Applied…eviction proceedings begin on___” type notice posted on home by the afternoon of the 6th. I then take a picture of it on the home (so neighbors will tell them when they get home what happened). I’ve never had a payment later than 3 days to this date and I’m sure its because they know I won’t be consumed by excuses (as some landlords do). You train them from the very beginning, in everything you say,do,and act, and your problems will be tons less. If you don’t have the courage up front to say/do these things, its my opinion you will have a rough road ahead. Folks, its YOUR money you are lending to a stranger. Why anyone (including park owners/managers) would let someone stay for free is beyond me. This is a business. With VERY FEW exceptions, you best leave your bleeding heart emotions at the door if you expect to be paid in my humble opinion. Ok, sorry for the rant, I’m off my soap box now. Todd (AZ)

Evicting for lapse of insurance - Posted by Steven Hilbon

Posted by Steven Hilbon on January 07, 2009 at 12:46:02:

I am a lienholder on a note in a park in Arizona that originated in August, 2008. I have NOT conveyed title-the title to the home is still in my name. They are on a rent to own, lease purchase, call it what you will. There is a signed sales agreement. They always pay me late-with no late charge-and ignore my demands for reinstating their insurance-they took out a policy upon move in and have now let it lapse. They are current on their space rent. I was hoping they would go delinquent on that and then just let the park evict them, but no such luck.

I could pay the insurance but that is the last option. It pi**es me off to have to do that. Additionally when taxes become due, I’m sure they will go delinquent also. There were no taxes this year as the home came off a reservation and the state added the home to the 2009 tax roll-so no taxes due until the end of this year. Also there is no space rent owed if the home goes vacant. Should also be very little fix up as the home was just rehabbed before they moved in.

What legal avenue do I go down as far as breach of contract for no insurance to get them out? Monetarily I probably won’t lose as the move in from the next party of $1000 will cover a few months of missed payments.

Re: Evicting for lapse of insurance - Posted by Shawn Sisco

Posted by Shawn Sisco on January 08, 2009 at 09:00:59:

If you have a valuable MH (one that could be resold) securing this note,insure the home. On my finance contracts I can â??force-placeâ?? insurance if buyer neglects to do so â?? this unpaid balance is financed at a much higher rate than the MH note â?? thereby giving buyer incentive to pay for the policy himself.
If your buyer wonâ??t likely ever follow through with his obligations make it your goal to re write the finance contract and this time include escrow to fund these annual expenses.

Re: Evicting for lapse of insurance - Posted by craig larsen

Posted by craig larsen on January 07, 2009 at 17:37:37:

Steven…Try searching “late payers” there’s some good stuff in the archives. He may only have the money for one bill at a time and you could move the due date to help. If his income isn’t enough to keep up the payments it’s time him to move out. If you think theirs a chance to save this sale I’d be on his front porch finding out what he’s thinking and go from there. It’s been mentioned here many times that a monetary incentive to leave soon and to leave the home clean sometimes works. Incentive to be given when he gives you the keys. When I first read your post I thought of two poker players one is bluffing and the other is folding and you have always had the best hand. Time to call him and see what he’s got. Good Luck…Craig(MI)

Re: Evicting for lapse of insurance - Posted by Tony Colella

Posted by Tony Colella on January 07, 2009 at 13:37:47:

This type of legal question is best asked of those in your locale.

I have found that the law not only varies from state to state but the interpretation and procedures can vary greatly from one county to the next.

You may find that money spent on an attorney who actually understands this type of deal in your jurisdiction (they will be few and far between so look hard).

I realize that this is probably not the answer you were looking for but I have learned long ago that getting the right answer from the right source for your jurisdiction is priceless.

Otherwise you can try and take someone’s advice here, go to your local courthouse, spend money and time to file paperwork only to find out on the date of court that you do not have the right paperwork, do not know what you are doing in that courthouse and look like unprofessional.

Spending the money to do it right the first time makes any future events easy and affordable.

Tony

Re: Evicting for lapse of insurance - Posted by Don-NY

Posted by Don-NY on January 08, 2009 at 08:22:49:

Well, First of all the very first time he was late he should have received an eviction notice from you! Now he has you trained to take whatever he chooses to give you. We learned the hard way, as I’m sure others have. Fast service is the only way to stay ahead of the game. But it’s not too late so start now and good luck.
Don