Posted by Karl (Oh) on October 02, 2005 at 22:42:29:
How would I handle what? Your buyer is only one day late on her October payment, after making the first seven payments early. I?d be over there mowing her grass. She wouldn?t even come close to being on my radar. This woman would be on my list of one of the wonderful things going right with my business.
I?d recommend sitting down and deciding how you want to handle your collections. Maybe when a buyer goes so many days late, send them a friendly 1st late notice, or hang it on their door. If they don?t pay or work something out with you after so many more days, a more threatening 2nd notice. If they default after 30 days, are you going to kick them out immediately, or work with them? That will depend on both the buyer?s history with you, and your personality. Some of your buyers will work hard and get back on track. Some will take advantage of you if they can. Learn your legal remedies, then use them at your discretion.
Posted by Karl (Oh) on October 02, 2005 at 24:13:52:
Brian,
Repossessing a mobile home is NOT the same process as performing an eviction. You?re not a landlord, you?re the lienholder on personal property. You need to file a replevin with the courts to get legal possession of the home. In Ohio its about a two month process. Go to your county clerk?s website, and search for records of cases in common pleas civil court. No doubt you?ll find plenty of lenders (Vanderbilt, Greentree, etc) who have filed in your county court to get homes back. Pick a repo in your favorite park, and search for the name of the previous owner. You?ll find the docket for the case describing every step the bank took to get back their home. You?ll even find the name of the local lawyer for the plaintiff. Maybe you can hire them to help you out.
Okay, that was the official answer. In reality, most of your buyers (and some of the judges) won?t know the difference between an eviction and repossession. You could pretend you?re the landlord, file for an eviction, and get the buyer?s out of the home quicker and cheaper than with a replevin. Most folks will leave when the sheriff knocks on their door and tells them to vacate the premises. Then just go put the title back into your name as the lienholder. It?s not the correct way to do it, but it seems to be working for Keith.
Posted by Keith (OH) on September 30, 2005 at 15:27:58:
The first thing you have to do is send the tenants a written 3-day notice to leave the premises and state the reason (failure to pay rent, damage to property, etc. ) you are aking them to leave. It also has some lawyer jargon on it letting them know their rights but I can’t think of it right now. Send it certified or tape it onto the door. Keep a copy.
If they voluntarily leave then you are in good shape. Just make sure you document that they have actually fully abandoned the home by taking photos or I usually pin another notice across the door (so it has to be removed to get in ) stating that it appears to be abandoned and we are going to to take possession unless notified in 3 days.
If they don’t vacate then you need to file an eviction at the court to have them removed. The few times that I have had to do this I hired an attorney and it cost about $300 and 3 weeks. After that you’ll get a call from the baliff who will meet you (and your help)to remove all the belongings. Change the locks and your back in business.
Either way it goes if the title is not in your name but you are the lienholder you will need to go to the title company and tell them your are repossessing due to a defaulted loan and they will issue a new title in your name.
Posted by Brian (OH) on October 02, 2005 at 10:34:27:
OK, I think I may have gotten ahead of myself. I have a buyer who I thought might have abandoned their MH. The grass was about 8" high and the car did not appear to have moved for two weeks.
I went by Friday night and the car was gone although the grass still had not been mowed. I will probably drive by today to see if the grass has been mowed.
Every payment since I sold it to her in February has been early until this month. The payment was due yesterday. I don’t want to take the home back unless I have to, I just want the payment.
If I do have to take the home back, I would like to avoid courts, attorneys, etc. if at all possible.
I have other LDs in the same park and I want to avoid getting a reputation as a pushover or a prick.
Posted by Karl (Oh) on October 02, 2005 at 19:42:18:
How long before she’s in default on her loan with you? If she’s only one day late, you can’t rush in and take back the home. She hasn’t broken her contract with you yet. Is she current with the park? I think you need to do some more detective work and try to find out where she went, and if she’s coming back.
If you do find her and she’s not coming back, have her sign a General Surrender and Release, and you can get the home back right away.
Posted by Brian (OH) on October 02, 2005 at 20:08:06:
Ok, Apparently I am WAY ahead of myself. She’s only one day late and my contract states that default occurs after the payment is 30 days late.
I will call the park manager to see if there’s a problem.
She’s been a good payor so far and I don’t want to take the home back, but I also don’t want things to take longer than necessary if there is a problem.
I thought about stopping by to talk to the buyer or maybe sending a friendly overdue payment letter.
How would you handle things?
Where can I get a General Surrender and Release form?