Lien without a note? - Posted by JeffB (MI)

Posted by Ray (MO) on July 28, 2005 at 14:29:22:

We did this with a MH we sold for cash but the buyer could not be approved due to no credit score. He seemed like an ok guy so we co-sined and placed a lein on the MH. We sold the home put our company as lein holder and applied for a new title. The contract we had him sign said if he becomes more than two months overdue with the park, he defaults. We haven’t had a problem.

Lien without a note? - Posted by JeffB (MI)

Posted by JeffB (MI) on July 28, 2005 at 13:32:43:

How would one go about putting a lien on a mobile home, without there being an actual note associated with it?

Situation: I have an old d/w home which needs to be vinyl sided (per park rules) and needs a new roof before someone can move in. Home will be sold for $500 as-is. Buyer agrees to do all the work, but cannot get park approval due to his credit score.

The way I see it, the buyer is going to be doing about $4,000 worth of work in the next month… and if he defaults on his lot rent, that’s fine, I’d be happy to take back the home in much better condition. The park will not allow him to sign a lease until the roof and siding are done, so there’s no risk of him not doing the work.

I’d like to put a secured interest on the title, even though he will not be making me any payments, so that if he stops paying his lot rent, I can take back the home in 10 days as opposed to the park being forced to do an eviction.

Is there anything wrong (or illegal?) with having a secured interest even though there is no note or payments being made?

Re: Lien without a note? - Posted by Steve-WA

Posted by Steve-WA on July 28, 2005 at 13:46:45:

nothing wrong or illegal, as I can see. Is your buyer cool with this? By letting him know that it’s for his protection (this way, if things don’t work out, you can just move on, and I’ll be on the hook with the park!), he should have no reservations.

Of course, the “how” will vary state-to-state. Call your titling authority (DMV?) and ask them how to go about putting a lien on a MH in a park.

Where I live, I just submit a new title application, with the registered owner’s signature, and me on the app as legal owner.

Re: Lien without a note? - Posted by JeffB (MI)

Posted by JeffB (MI) on July 28, 2005 at 15:19:32:

Buyer is okay with it. I know how to put a lien on the title, but I’ve only done it where there was an actual note involved. Not that the DMV ever asked about the note, though.

Unfortunately, the buyer could not get approved by the park even with my help. So, I’ll have to find another buyer for this one…