PM sold my client a 2 MH, recommends I foreclosure - Posted by Jeff-oh

Posted by mike_mn on January 16, 2006 at 21:21:36:

I have heard of folks charging a repo fee. Is this possible in this situation? Probably works better if you have a cosigner.

PM sold my client a 2 MH, recommends I foreclosure - Posted by Jeff-oh

Posted by Jeff-oh on January 10, 2006 at 09:10:10:

I would like some input on this situation.

I have a client who purchased a home from me a year ago. In the last couple of months the PM let the client know about a MH (still in park) they had and sold it to the client. Now the client cannot afford 2 lot rents and my home payment.

PM was okay with them moving into the 2nd home they purchased outright from the park and “giving-back” the MH I have a note on. — The PM was in the process of contacting me to make arrangements for me to pay the lot rent, when I went to she her.

My issue, these two worked a deal where they are both happy, they do not think I am owed anything and expect me to pick up the bill if the home is unoccupied.

What I want, I have no problem taking this home back and selling again, however, I want some time to do this with out paying lot rents.

I believe the park has some responsibility for approving the client to another home in the park knowing they owed a creditor on their current home and that they would have a forclosure on this 1st home.

This does go to show the wisdom of Lonnie’s method, I do not own the home.

I am prepared to tell the park that this home is owned by the client, that they are responsible for the lot rent, and that I cannot repo it until the park goes through an eviction. However, this is an adversary position where no one wins, They must be a better solution.

What is your advice on this situation, have you run into it. How do 21st, Vanderbilt deal with this.

Move to greener pastures - Posted by Ryan (NC)

Posted by Ryan (NC) on January 10, 2006 at 10:58:15:

Jeff,

IMHO the park is playing dirty and I’d work to get the title back in my name ASAP! Provided that this is a decent home, I’d show up to remove the underpinning the day I got the title and notify the PM that the home will be moved on such n? such a date and why… I’m not sure if in OH the parks can collect lot rent from you prior to eviction or not but from what I’ve see of Karl’s numbers moving them is fairly cheap in your area.

While you are waiting on the title look for a good mover and a new park that you’d like to work and offer them the opportunity to use your services and get a home moved into one of their vacant pads. Then I’d locate the owner of the current park via the county tax records and use John Hyre?s pink postcards making it a point to move as many homes as I could from the park.

Maybe I’m just in a vengeful mood today? But ?mobile homes? are called that for a reason, we?ve made money on every home we?ve moved and it sound like time to find a greener pasture to me! Just my 2 cents, take it for what it?s worth.

Best Wishes,
Ryan Needler

Re: PM sold my client a 2 MH - Posted by Tony Colella

Posted by Tony Colella on January 10, 2006 at 10:45:08:

It sounds like you may have a problem with the park manager brewing here that will likely affect your future business in that park. This is one of the concerns when playing on someone elses playground.

Much of the strength of your nogotiating posistion lies with the number of deals and the service you provide that park. If you are an asset that keeps lot rents coming in and/or filling vacancies, then you are in a good position. A heart to heart about what you have done and can continue to do to make that park money is in order.

If you do no control such a negotiating position then you may be looking at working in other parks.

To clarify a few things from your post. If you did not sell land with the mobile home, then you are Repossessing the mobile home, not foreclosing. The processes vary quite a bit.

You wrote that you do not own the mobile home. I am not certain what you are trying to say. You are the lienholder and can be held responsible for lot rent once the buyer stops paying (how much will be dictated by your state law and what you can negotiate with the PM).

It sounds to me as though much of your problem will be handled in one or two trips to the park and buyer. If the buyer cannot afford the lot rent on your home, then explain that you are willing to accept the home back and will waive the balance of the money owed to you under the note. Get the buyer to sign something saying that he/she is voluntarily returning possession of the home to you. If not, tell him you have no other choice but to sue him and obtain a judgement against him for the balance of the loan.

Your heart to heart with the park manager might explain that what they did was like you soliciting their tenants to move to other parks. Be nice and ask that since the park caused this repossession that you be given a month or 2 free rent to find another buyer (if this is what you want).

Market the home to another buyer and increase your yield on the deal. Most of my Lonnie deals were boomerangs that came back time and time again, each time making me more money. What might have been a 2 or 3 year income stream becomes 6 or more years.

Tony

greener pastures may be right here - Posted by Jeff-oh

Posted by Jeff-oh on January 10, 2006 at 12:55:22:

Ryan,

Believe me I have gone through your shame thought process, however, before declairing war, I would like to see if I can Fenesee my way into another park. I want to take the High road if I can. I have moved homes and I have a place I can put it, however, this home has a stick built add on that complicates the move.

Believe me I will make $$$ out of this, I am just a little pieved that some how all of this is now my problem.

Bottom line a move will be more than 8 months lot rent. I can afford to play my options for a little while.

Thanks for the advice.

Re: PM sold my client a 2 MH - Posted by Jeff-oh

Posted by Jeff-oh on January 10, 2006 at 13:19:37:

To clairify, yes reposession is the correct term.

The park has also offers other homes to this same couple. I think they were tring to do Lonnie deals but never quite caught how to do it. The park dosen’t care who owns the home just that lot rent is paid.

To be more fair to the park, I have not persued this park as heavily as others in the area. What I really want is to forge a good new relationship. So yes negociating a lot rent arrangement is the Win-win I am looking for.

I just get a little pieved that the client has taken two weeks to move and get out before the end of December and no one calls until after the payment is over due on the 6th… Yes, I know this is par for the course… I still bothers me though.

Re: greener pastures may be right here - Posted by Ryan (NC)

Posted by Ryan (NC) on January 11, 2006 at 07:21:40:

Jeff,

The stick built add-on complicates things quite a bit! If you haven’t already gotten your money back you’re probably only a couple hundred from it… Gota love trailers don’t ya =)

If things don?t work out with the PM or the park owner maybe it would be best just to stick a wholesale price tag on the unit and grab enough cash to buy a new unit some where else and move on… I’m sure there is someone out there with $3-4k cash considering it’s almost tax season.

Good luck and let us know what happens.

Best Wishes,
Ryan Needler

Re: PM sold my client a 2 MH - Posted by Anne_LLC

Posted by Anne_LLC on January 10, 2006 at 13:32:58:

Jeff,

Are you saying that the payor didn’t notify you until their payment was overdue? If you take back the home I suggest you make them liable for the lot rent and taxes (pro-rated by day) for the whole time they’ve used the MH. In other words, they give you the keys and prove that everything is paid up, THEN you take back the MH.

I tell my buyers that I’ll forgive the lien in return for getting the home in the same or better condition, but I need 30 days notice and if I don’t get that, then they need to give me an extra $250.

good luck, this is a stinky situation.

Anne

Re: PM sold my client a 2 MH - Posted by Don-NY

Posted by Don-NY on January 11, 2006 at 07:22:51:

My lease has a clause that states “the tennant is responsible for all lot fees through the end of the month the home is occupied either literally or by contract” I sell with an Ernest type lease/option deal.