Posted by jp on June 16, 2004 at 10:16:37:
Thanks Tony and Steve,
Even without any sort of documentation to prevent this scenario, I would not let that possibility stop me from dealing. I consider it unlikely and a risk I’m willing to take.
Thanks again. Take care.
Has anyone ever had this happen? - Posted by jp
Posted by jp on June 16, 2004 at 09:46:06:
I know this is an unlikely scenario, but I thought I’d ask.
What if your buyer is current on lot rent, but late on your note, forces you to repossess and then insists that you move YOUR mobile home off of THEIR rented lot?
Is their a way to repossess the mobile while simultaneously evicting them from the lot?
I bet this has been discussed but I couldn’t find it.
Thanks all.
Re: Has anyone ever had this happen? - Posted by Keith (OH)
Posted by Keith (OH) on June 17, 2004 at 08:51:14:
jp,
You may consider this;
When I first approached a PM they were a little on the edge until I told them I guarantee the lot rent.
In order to do this they wanted me to sign the lease for the lot rent and then rent the lot to the buyer.
So I am renting the lot from the park and the buyer ends up renting the lot from me until the note on the home is paid off. This keeps you in total control as to where a partial payment gets applied. If they get behind either way you can evict with little problem.
This does have advantages and disadvantages so you must weigh them out yourself.
Just a thought,
Keith
Re: Has anyone ever had this happen? - Posted by Charles K. Clarkson (TX)
Posted by Charles K. Clarkson (TX) on June 16, 2004 at 15:34:33:
Tell the tenant “No”. Let him take you to court to have the home removed. In the mean time, put it up for sale. The park manager wants homeonwers, not trouble makers, in the park.
Re: Has anyone ever had this happen? - Posted by Steve-WA
Posted by Steve-WA on June 16, 2004 at 10:05:35:
or what if . . . what if . . . what if . . .
jp, you are trying to find excuses not to do this.
stop it.
Oh, and there is a way:
THIS AGREEMENT made this ____ day of ___________, 2001, by and between __________________________, the Purchaser (whether one or more), and TinCan Tenants, Inc., the Seller, provides:
Premise 1. The Purchaser has agreed to purchase a manufactured home from the Seller. That manufactured home is located in the Tornado Alley Community where the Purchaser is or will be a tenant and the mobile home park is or will be the landlord.
Premise 2. The Seller will not be adequately protected against a potential default by the Purchaser unless the Seller can gain possession of both of the manufactured home and mobile home lot.
Premise 3. The parties desire to provide adequate protection to the Seller. NOW THEREFORE, in consideration of the premises, the parties agree that if the Purchaser defaults under the Purchaser?s contract to purchase the manufactured home from the Seller or a promissory note, security agreement, or loan agreement made pursuant thereto, then the Seller shall have the right, superior to that of the Purchaser, to possess both the manufactured home and the mobile home lot where it is located.
Tornado Alley Community joins in this agreement for the LIMITED purpose of granting the Seller a possessory interest in the mobile home lot where the manufactured home is located for the LIMITED purpose of permitting the Seller to bring an Unlawful Detainer against the Purchaser if the Purchaser defaults under the contract to purchase the mobile home or a promissory note, security agreement, or loan agreement made pursuant thereto. The mobile home park does not waive any right it has against the Purchaser/Tenant, including, without limitation, the right to bring its own Unlawful Detainer or other suit if the tenant breaches the mobile home park lease and to recover all amounts due it from the Purchaser/Tenant.
Buyer signs
Seller signs
PM signs
I got this doc from another investor - I express my thanks. That said, this doc is not to be construed as a legal document or legal advice - consult your own attorney; now stop making excuses and get off the couch.
Re: Has anyone ever had this happen? - Posted by Tony-VA/NC
Posted by Tony-VA/NC on June 16, 2004 at 09:56:03:
Yes, this can happen, although it is quite unusual. Typically, if they buyer is unable to make your payment, they are not paying lot rent either.
The line of thinking is this. The park rent is simply rent but they are “buying” the mobile home, and typically the mobile home payment is made before the lot rent.
Where this may become reversed is if the Lonnie investor is too slack in collection and the park manager is not.
This is yet another reason it is so important to work closely with park managers. Usually by working together, you can get the person out.
I had this scenario occur once and met with an attorney to figure out how to prevent it. In essence we included a 3 party agreement, signed by us, the park and the buyer, that in essentially stated that our interest would not be sufficiently protected unless we were able to step into the lease upon default of the purchase contract by the buyer. We would then evict them.
My attorney felt comfortable that he could argue this successfully in court in that jurisdiction. We never had to test this in court.
The fact that we had such a document was enough to get buyers motivated to work out the problem.
Such a document is worth considering and has been discuessed here in the past. Since this document was never tried in our local courts, I do not feel comfortable emailing it to others, sorry.
Honestly the wise approach is to forsee the problem, which you have done, and find a remedy that is defendable in Your local courts.
Tony
That’s The Form - Posted by Tony-VA/NC
Posted by Tony-VA/NC on June 16, 2004 at 16:09:07:
This is the form my attorney drew up. I suppose I have emailed it to someone in the past. Again, it has not been tested either in court or in YOUR jurisdiction so have it reviewed and adapted by your, local attorney.
Tony