No Contract Sales Allowed - Posted by Brian

Posted by Brian on June 07, 2001 at 18:05:48:

Thanks.

No Contract Sales Allowed - Posted by Brian

Posted by Brian on June 07, 2001 at 13:45:27:

HI-There is a MH for sale I am inquiring about. The owner has vacated. Talked to park manager, owner is two months behind on lot rent. I would like to purchase this but the manager said proof of ownership is required and must be owner occupied. No problem because I want to resell, but No contract sales are allowed. How do I get around this? They require conventional purchase contract.

Re: No Contract Sales Allowed - Posted by John SirJohnathon Grounds

Posted by John SirJohnathon Grounds on June 07, 2001 at 22:31:27:

Brian,
You are going to run into this often. I agree totally with Robert said. Basically you just explain that you also have a mortgage company which you finance people through. Put the title into their name, place a lien on it, and hold the original. Give them a copy. The only problem you will have is if you actually create a corporation to do the mortgages. In that case you will have to become a licensed residential lender in many states. As long as you keep the company non-incorporated you should fall into the “loaning sellers own money” clause.

Good luck,

John “SirJohnathon” Grounds

Re: No Contract Sales Allowed - Posted by Robert McNeely

Posted by Robert McNeely on June 07, 2001 at 16:58:03:

In a contract sale you retain title. Don’t sell the home on a contract, title it in the buyers name, and put a lien against the title. Doe’s you state control the transfer of mobile homes with Auto titles? If so look at your car title if you are still paying for it. It will be in your name with the bank as the lien holder. Be the Bank, only. Then I tell people that I am the bank. If your car breaks down, do you call the bank? If your MH has a problem call the MH repair people.

How do you “place a lien on it”? - Posted by Jason Bedunah

Posted by Jason Bedunah on June 08, 2001 at 21:40:34:

Ok, that changes my strategy. I had hoped to hold the title to make potential evictions easier. How do I create a lien on a title?

Re: No Contract Sales Allowed - Posted by David (OH)

Posted by David (OH) on June 08, 2001 at 07:28:57:

Is this why people form LLC’s instead of C/S corp’s to hold the notes?