MH Lien?? -- Lonnie or Ernest, please answer - Posted by chill

Posted by Chuck (AZ) on July 02, 2001 at 17:43:22:

Chill could place a lien on it, but it would be have to be against the person who owes him, and that’s the “tentant”.

IF the bank doesn’t remove it from the park, then they’ll be on the hook for the lot rent (beginning now) and could possibly BECOME accountable for the past due amount, IF Chill pushed the issue… but only IF they don’t remove the unit.

Personally, my previous advise sounds like a wiser course of action.

MH Lien?? – Lonnie or Ernest, please answer - Posted by chill

Posted by chill on July 02, 2001 at 12:02:20:

We are still relatively new mh park owners. We own none of the homes, just the dirt. Mostly everyone pays lot rent, except for 2 tenants with whom we’ve had trouble. One of them lost his job and we’ve tried to work with him, and for awhile he paid a little whenever he could, so we kept trying to keep him and give him more time. Finally, he didn’t pay and lost his phone so we couldn’t call him and we finally sent him a certified letter stating he had 30 days to pay up or move out. Yesterday we went over there (we don’t live very close) and his mh is nearly empty – he was there and said that his house is being repossessed this week and will be moved out. We have a month-to-month contract with him, but he didn’t list any loan on it and since it is older, we assumed he owned it.

Is there any type of lien we could place on the home for the unpaid rent – the tenant has no money, so though he says he will pay us someday when he gets back on his feet, we don’t think we’ll see that day.

In the meantime, we are trying to contact the company who has the financing to see if they might sell it and leave it – we could resell and take a note.

Just wondering if they have any responsibility for the past due rent. I am guessing not.

Re: MH Lien?? – Lonnie or Ernest, please answer - Posted by ray@lcorn

Posted by ray@lcorn on July 02, 2001 at 22:40:09:


We have a number of homes in our parks that we acquired, and subsequently resold, because the lender got stuck with back lot rent. Yes, in my state they have an obligation to pay unless they have a signed landlord’s waiver from the park owner, which we never sign. We can get a lien on the home, and it can’t be moved until we are paid. We do work with them though… they are a great source for deals, whether buying or selling, and there’s no reason make a difficult situation worse… better to make it into an ongoing relationship that is mutually profitable.

On the other hand, I agree with the advice below that if it is a junker, make the lender get it out of there pronto. The enhanced curb appeal of a late model, landscaped hopme is worth far more to the value of the park than a few months of cash flow from a home no one wants to live beside.


Re: MH Lien?? – Lonnie or Ernest, please answer - Posted by Eric C

Posted by Eric C on July 02, 2001 at 21:40:29:

Hi -

Please note that my experience is about 10 years old and things may have changed, but when I was buying MH notes in Texas I always insisted on a landlord’s waiver of lien.

That way, if I didn’t get my payment I could actually move to repossess (if necessary) and more importantly, move the trailer (MH, sorry!) to another, more friendly location.

Without a signed waiver, that collateral could not be moved. Period. It wasn’t going anywhere. I couldn’t do it. A bank couldn’t do it.

Call your local banker (the one with whom you’ve developed a relationship - you have done that, right?)and ask. I suspect little has changed, but better to be safe than sorry. After that, find out which local attorney does the paperwork for the bank.

In my opinion, you would be well advised to use him (or her) for your deals from this point forward. (especially if you have any ideas of hypothecating, pledging or even “selling” any of these deals to that bank in the future)

On the other hand, this mobile home may be too old to profitably resell. If that’s the case, you might just want to let this one go (as another poster suggested).

Seriously, check out the landlord’s lien. You may be in better shape than you think.


Eric C

Re: MH Lien?? – Lonnie or Ernest, please answer - Posted by lonnie

Posted by lonnie on July 02, 2001 at 19:45:52:

Hi Chill,

I would first contact the lien holders and find out what they intend doing with their old beat up and trashed mobile home, with $xxx delinquent lot rent due, that’s sitting in waist high weeds, on your lot. If it looks real bad, send some unflattering pictures of the home to them. Depending on the age and condition, they might very well be willing to give it to you, rather than spending money to have it moved.

Don’t make them an offer until you see what position they take, and how anxious they are to get the home back. If it’s an older single wide, and needs work, I would try to get them to pay me for taking it off their hands. Otherwise, they’re looking at spending money to have it pulled, a park that will accept it, or paying storage until they find a buyer. They don’t have any negotiating leverage, so don’t give them the impression that you even want the home. With all the repo’es the banks have, I’m sure they wouldn’t want another one, especially if it’s old and needs repairs.

Not being familiar with the laws in your area, I can’t say what the procedure is for repo’ed homes. Check with your clerk of court, or City Attorney. Since the home is in your park, and rent is owed, you might do what many parks in my area does. Some parks send the lender a notice that the home has been abandoned, how much rent is owed, and if they want to keep the home in the park, send a check. And this works in most cases. You might try it and see what happens. But let them know that it’s their problem, not yours. And they can always go after the person who owes them the money.

You might want to initiate the appropriate legal action for possession of the lot. Once possession is granted, notify the lender and require them to pay rent or pull it. If they do neither, you would then have legal grounds for rent, or the home.

Since you’re not making any money on this home, a vacant lot might be the best thing for you. By placing you home on the lot, selling and taking a note, you’ve taken over the banks position. Why let a bank make money in your park?

Good luck, and let us know what happens,


Re: MH Lien?? – Lonnie or Ernest, please answer - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 02, 2001 at 14:41:10:

My 2 cents worth.

Personally, I’d leave this alone. He’s leaving without a legal dispute and the OLDER home is going with him, so to speak.

This now gives you the chance to replace it with a NEWER home, a potential Lonnie-deal, and a more financially responsible tentant.

I don’t think you’ll ever see the past due monies, and I wouldn’t loose any sleep over it… it could have been worse.

It’s an opportunity.

Re: MH Lien?? – Lonnie or Ernest, please answer - Posted by David (OH)

Posted by David (OH) on July 02, 2001 at 15:08:45:

If (big if) the old mobile home does get removed by the bank, does chill still have recourse against the bank for back lot rent?