First Eviction? Help? (Long) - Posted by AC

Posted by Chuck (AZ) on July 15, 2001 at 12:31:29:

Anytime AC.

Another thing you could do, is take the first months lot rent out of the down payment and adjust the note accordingly with additional payments, so you get it back on the tail end (or get the first and last in advance), then stipulate that the tenant/buyer has to remain current on both in the contract.

That would buy you some breathing room with a difficult PM/situtation.

First Eviction? Help? (Long) - Posted by AC

Posted by AC on July 13, 2001 at 22:45:50:

Sold this mobile home $800 down $200 a month for 36 months in June. Buyer made the down payment and first months lot rent.
Come the 5th of July she hasn’t paid lot rent. I get a call from the park owner on the 9th that he hasn’t received payment. I check it out and the buyer says she didn’t receive the monthly lot rent statment which includes the water service amount as well. She says she will pay immediately including $5 a day for payment past the 5th.
As of today the money has yet to be received by the park owner. She is due to pay me my $200 tomorrow…yeah right!
I live in PA is the formal procedure to send her a letter stating she is in default because she hasn’t paid lot rent
(used Lonnie’s promissory note)? Do I then give her 5 days to pay the full amount of the loan (right now $7000)? By the way, I am on the lease too so I will have to pay late fees? Really new to this and having a bad experience. Advise would be helpful.
If I still lived in Oklahoma I would say to her “pay up or I’ll beat you like two eggs in a cake mix.” Back east you can’t go around doing that!!! LOL
Thanks in advance for your help.


Re: First Eviction? Help? (Long) - Posted by lyal

Posted by lyal on July 15, 2001 at 09:05:45:

AC, Be sure to put finding out how the process in your state works(exactly) at the top of your list. It would really be worth an hour or so of a knowledgeable attorney’s time (note the knowledgeable part, probably not the attorney who handles your family affairs. Check with the park and see who they use for legal advice) to have the process explained including exactly what forms you need and what recourse you have. Where I am (MN) you need to issue a 30 day “Notice of Default”. They have that 30 days to “cure” whatever it is that puts them in default (payment, lot rent, failure to obey park rules etc) and they can do that 2 times in a calendar year. Then you need to take them to court and win a case (read pay a lawyer). If they don’t leave you need to pay more money to have the sheriff put them out unless its winter and then you need to wait for warm weather. If they disappear, you need to do a repleven before you touch the home and on and on ad nauseum …
Point is, if you don’t know and follow the rules, you create even more of a mess for yourself.
Luckily I’ve only had to take back 2 homes and they both cooperated and signed a “Surrender of Premises and General Release” and made it easy for me.
Do your homework and save a lot of headaches.
All the best, Lyal

Re: First Eviction? Help? (Long) - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 14, 2001 at 12:46:44:

Assuming she doesn’t make the payment to you… send her a 5 day notice of “default and forfeit” (or whatever it’s called in PA).

In english, she has 5 days to pay current or it’s yours again. Have the PM do one for the lot rent NOW.

Ultimately, your on the hook for the lot rent/late fees, assuming she doesn’t pay up. This would be true even if you wern’t on the lease. You still hold the title/own the home, until the note is satisfied, and that makes you responsible in the parks view.

To prevent this type of problem in the future… modify your contact to include a “non-recourse default clause”.

Basically it states that if the lot rent becomes deliquent and/or the note payment does… the buyer is in default of contract, and you then have the right to take back the home within a certain time frame (the shorter the better), without recourse from the buyer.

In effect, the buyer is agreeing to vacate (within the time frame) if they default on the lot rent or the note.

Make sure the PM knows of this change.

If you encure any expenses because of this thing, roll them into the sales price the next time you sell it.

Pre-screen the next buyer to the nth degree.

Re: First Eviction? Help? (Long) - Posted by AC

Posted by AC on July 15, 2001 at 07:09:48:

Thank Chuck for your help on this one. It’s strange, I’ve been going over to the trailer every other evening to check on payment. On Saturday, the tenant calls me up and says she has the money. I go over and she pays me $400 for this month and next month mortgage because she feels bad about the problem she has given me. She shows me a receipt for the payment in back lot rent as well!! I was stupified!! At any rate I appreciate your help and well modify my promisoory note in the future.

Thank you Chuck