Michael, It does make perfect sense. I’m factoring in worst case senario if I have to evict her. I will of course be talking to her, the PM (if she hasn’t paid rent, has she paid lot rent?, doubtful) and the seller. It seems here in this county it either hard to evict or it takes a long time. I’ve talked to a PM that has a renter who hasn’t paid in 8 months. Bad managering or too much hassle in going to court I don’t know. Guess I’ll find out sooner or later. Thanks for the advice, I printed it off, so if anyone gives me grief I can whip it out and say “see Michael says it so” Just kidding.
I know I should probably ask this somewhere else, - Posted by Amy (IN)
Posted by Amy (IN) on January 22, 2005 at 11:21:54:
but, I like you all so much here. I have a little deal that has been presented to me and I was hoping for some logistics help with it.
I have a owner of a 2/1 MH on a rented lot. He tried and tried to sell it for 5K. He finally sold it on contract to a little ole lady for 3K. That was December. She hasn’t paid 1st or 2nd month rent to him. I called to check and see how things were going (nice person I am), he’s frustrated and doesn’t want to deal with it. The contract to sell was a VERBAL one only. 200 per month for 15 months.
OK, I want to buy his “note”. I figure I will offer him 1500.00 cash. Since he only has a verbal agreement with this nice ole lady, can buy the MH note from him, go to her and have her sign a real purchase contract to me (same price and same terms)? Or is that predatory lending?
All in all I figure I will either get the home back or have to change the terms on her note if she isn’t able to make the 200 per month, which means I can still use the 3K purchase price, change the payments to 100.00 per month with interest. The home would safely go for 5K on the market
It sounds simple to me, kinda like when the lenders sell my home loans, but given the fact she doesn’t have a contract with him I wondered if there was some pitfall I should be looking for.
Whose name is the title in? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on January 22, 2005 at 16:34:25:
If it’s still in his name only, she has no written agreement and she hasn’t made any payments then I wouldn’t think she has a legal leg to stand on. In that case would she be considered a renter? I don’t know. There’s no written lease either, apparently. That’s something I would check into - get more info and check w/ an attorney if need be to see what would be involved in getting her out. A simple eviction, maybe?
This sounds like a good scenario to get a home for free (or next to nothing) for solving HIS problem that HE created by not accepting your original offer in the first place.
Find out the answers to the questions I asked above. This is an interesting situation and I’m curious to see what we can do w/ it. Please keep in mind, though, I’M NOT AN ATTORNEY AND AM BY NO MEANS GIVING LEGAL ADVISE. ALL ADVICE GIVEN IS MY OPINION ONLY!!
Re: Whose name is the title in? - Posted by Amy (IN)
Posted by Amy (IN) on January 22, 2005 at 16:42:06:
The title is in his name still, it’s a backwards area I live in…people still trust eachother here…hahaha
I don’t want to evict her if I don’t have to, which goes without saying she won’t be staying rent free either. I know I read about this senario in Lonnies books but I couldn’t find it when I looked. I want to say it went something like the guy was late on his payments so Lonnie purchased the loan and changed the payment date. ??? This sounds like a similar deal. After all how does buying MH notes go anyway?
Amy
Re: Whose name is the title in? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on January 23, 2005 at 13:30:28:
Yeah, the example you mention from the book sounds familiar. The only problem is that it doesn’t sound like this woman is just late, she just flat-out hasn’t paid from the beginning. That’s not someone I would want to try to keep in the home.
Let me make clear that I haven’t dealt w/ a situation exacltly like this so I can’t speak w/ absolute authority, but here’s what I’d do . . .
I would want to see a copy of the title to know for certain that it’s a clear title in the seller’s name only. I would want to speak w/ the woman and see what’s going on from her end. I would ask her if she bought the home, is she making payments, does she have a written agreement. I would ask this just to make sure that the guy is being honest when he says that nothing is in writing. I’d hate to move forward on the deal and then have her produce something in writing and screw up my plan.
At the same time I was doing all this I would also want to consult w/ a local attorney and see what would be involved in getting her out in the case that there actually isn’t anything in writing. Will it be a simple eviction?
If the legal process isn’t too complicated I would move forward. Work out a price w/ the guy to take the problem off his hands and get it out of his hair (free?!). At the same time explain to the woman that you’re buying the MH she’s living in and she needs to move out or you’ll have to evict her. I’m sure she’ll say she owns it at which point you’ll have to point out the realities of the situation to her - her name isn’t on the title, she has nothing in writing and SHE HASN’T MADE A PAYMENT ANYWAY!! So . . . she needs to move. Or perhaps I would sell it to her if she could come up w/ $1,000 down (or pick your own figure that works for you) - especially if I had paid less than $500 for it. Or offer to keep an eviction off her credit and save her the hassle of everything if she’ll just be out by such-and-such date. I would try to work it out amicably so the place would be in decent condition once I got it.
Have I made sense so far? Ok, if things have went well up to this point . . . sell it and start collecting payments from someone who actually WILL pay.
Again, this is my opinion. You’ll ultimately have to be the one who decides what to do.
Go to owner and get it in writing that you’ll try to help him since you are experienced and know how to deal with people like this if he can’t or doesn’t want to. You get this lady paying or out and you will split it with him 50/50 up to $1500.
Thanks for the advice, I printed it off, so if anyone gives me grief I can whip it out and say “see Michael says it so” Just kidding.
