Posted by Tony Colella on July 04, 2005 at 09:59:13:
Yes, the DMV will issue a repo title to the lienholder. I did this quite a bit when I did Lonnie deals in Virginia. I believe the cost was $6 - $10 for a repo title.
The defaulting buyer did not have to sign anything as it was a repo.
I was probably too concervative. I always went to court, even if they left and got the court to give me legal possession before I obtained a repo title. If the buyer left voluntariy, I had them sign a voluntary repossession form to keep in my file.
DMV never required any proof of how or if I had repossessed the home.
You would not need to go to court for example, if the buyer moves out and defaults according to your note. I later had an attorney review the process and I followed his advice (posting required public sales notices) etc.
Each state will vary but bear in mind that landlords obtain legal possession of abandoned homes all the time without going to court.
Handling title docs - Posted by MichaelH
Posted by MichaelH on July 02, 2005 at 08:08:36:
I’m about to close on my first MH sale (YEAH!) and I’m wondering what to do with the title document that I paid the state so much for. I’ll be holding a note for $7500 payable over a period yet to be determined.
When a bank makes a car or MH loan, they hold the title doc until the loan is paid off, then deliver it to the buyer. The title is currently in my name and I’m thinking to do the same thing: holding it until payment is completed, then to sign it over to the buyer and let them take care of DMV themselves. Is this the correct thing to do?
Re: Handling title docs - Posted by Tony Colella
Posted by Tony Colella on July 02, 2005 at 21:35:41:
You can do it either way but to clarify, the bank that loans on your car does not hold title in their name, they list you as the owner and the bank as the lienholder. In most states that I am aware of, the lienholder retains the title until the underlying note is paid off.
By keeping the title in your name, you are in essence offering your buyer a contract for title. When they meet their obilgations under the contract (make payments of $xxx for XX months) they get the title.
Typically the buyer pays for the transfer of title.
Holding title in your name may make an argument for liability purposes but that’s probably arguable. It also may make insurance a bit more to explain to obtain but it depends upon how you address this in your contract.
Tony, please see post below - Posted by Mike/nc
Posted by Mike/nc on July 04, 2005 at 09:20:04:
If they default?? - Posted by Mike/ncq
Posted by Mike/ncq on July 04, 2005 at 09:17:16:
Tony, If you put the title in their name and you as the lien holder and keep title in your possesion then what do you do if they default. Can you just take the title back to DMV and tell them to change it back to your name? Without them haveing to sign anything?