Interesting Situation - Posted by Mr. H (IN)

Posted by Dr. B(OH) on March 18, 2008 at 19:35:54:

Hmm, I presume you have a contract that says all money must be paid (payoff) in order to release title. On the one hand,if the payoff check is good, the home is his. On the other, if the payoff check is not good (more likely) the home is yours.

So go down to his bank and see if there is money to cover the check. If not, the answer is easy.

If there is enough, your dilemma still stands. I’d try to track him down to sign over title to you, sign a release of all interest, or something of that nature if you hand him back the check.

Alternatively, if the check is good, you can release the lien and mail to last known address. I would only do this after discussing with the park their own desire to hunt him down or go through the abandoned title process.

Steve

Interesting Situation - Posted by Mr. H (IN)

Posted by Mr. H (IN) on March 18, 2008 at 18:26:44:

Sold a home some time ago. Buyer has been a steady payer. He was late a couple of times in the beginning but good since then. Has made 17 payments.

Called me last month (Feb) for a payoff amount. He said he was selling it to a friend of a friend and wanted to pay me off with his tax return so he could transfer the title to the new buyer.

I received a check for the payoff amount a few days after our conversation. Before I made it to the bank, he called and asked if I could hold it a day or two - it looked like his buyer was backing out and he was unsure what to do.

A couple of days later (by this time the payment was late) he sent a monthly payment with no late fee. Said he would payoff next month (March). So far there has been no March payment and no return phone calls. He has apparently skipped out on the home and me.

Hereâ??s my question. I still have the payoff check â?? havenâ??t checked with the bank to see if it has a stop payment on it or if thereâ??s money to cover it. What do you think about me trying to cash it to get what is owed? Conditional on it being a good check of course. Has anyone had a similar situation and what was the course of action and/or result?

Re: Interesting Situation - Posted by Salverston

Posted by Salverston on March 18, 2008 at 23:00:30:

He told you to hold the check a “day or two” If those were his words, or equivalent, deposit the check.

If it bounces, then do what you have to do to declare him in default and take back the MH.

If it clears and the check pays the account off (with the late charges)then do the paperwork to release your lien, mail his title to last known address.

If it clears but there is still some owed after late charges, then send him a notice detailing the figures with what is still owed.

If it clears but he overpaid (because of the one payment made), I would cut a check for the difference after releasing my lien and send the check with the paperwork to the last known address.

I would also contact the Park Manager to ask them to keep you informed of activity around the MH and if the space rent gets behind.