Repossessing Lonnie Deals - Posted by John Katitus

Posted by phil fernandez on August 18, 1999 at 10:55:25:

DC,

Your questions about taking a mobile home back will be state specific. Check in with your states laws and regulations on this.

A quit claim deed is a deed that transfers ownership just like a warranty deed. The quit claim deed is more limited than a warranty deed in that it only transfers the specific interest that the one transfering the deed actually has. It does not warrant title further back in the chain of title. I’m not a lawyer, but that is my take on the subject.

In my reply earlier I used the terms deed and bill of sale as the same. Some states transfer mobiles through a bill of sale, like my state and some transfer mobiles through various types of deeds, so I’m told.
In my state I wouldn’t really execute a quit claim deed at the original closing. I would execute a second bill of sale transfering title back to me in case the buyer stopped paying me.

This area of getting either this second bill of sale or with real estate, a quit claim deed, at the original closing and having it hold up in court is a gray area. They may not. I would consult a local attorney on this issue.

Saying that it might not hold up in court, the reality of the matter is this. Very very seldom are you going to have your defaulting buyer challenge this point in court. They don’t have the funds, energy, or desire to. Most of them will just walkaway and disappear.

Repossessing Lonnie Deals - Posted by John Katitus

Posted by John Katitus on August 18, 1999 at 24:42:12:

I guess I have come full circle in the Lonnie business now that it is time to repossess the first home I sold. The mobile home is titled in the name of the buyer with me as lienholder. They didn’t pay last month and are probably getting evicted from the park for other violations.

I would greatly appreciate all advice on the repo process. Thanks.

Re: Repossessing Lonnie Deals - Posted by Robert McNeely

Posted by Robert McNeely on August 18, 1999 at 20:52:52:

I now have the buyers sign two different “power of attorney” forms, one to allow me to put the title into their name and one that I keep in the file that says I can use it to put the title back in my name if they go into default. I have not tested it in use yet, but no one has refused to sing both forms.

Re: Repossessing Lonnie Deals - Posted by Lonnie

Posted by Lonnie on August 18, 1999 at 07:28:52:

Hi John,

Check with your Clerk of Court as to what procedure is required to repo the MH. And I suggest you start action immediately, the longer you wait, the more you pay. Also, check with park manager and see what, if anything, they?re doing about delinquent rent. The park should be going after their tenant but most often they will expect you, or the lien holder to pay if you want to keep the home in the park. Try to maintain a good working relationship with the park and you will both come out better.

Incidentally, the time to find the answers to your questions are BEFORE something happens. That way, you will be ready to take action and not lose time searching for answers.

Good luck,

Lonnie

Re: Repossessing Lonnie Deals - Posted by phil fernandez

Posted by phil fernandez on August 18, 1999 at 07:14:54:

John,

I just took a mobile back last month. The best possible scenario would be to get the mobile back as soon as possible. The easiest way would be to have them deed it back to you in lieu of foreclosure. If you have to bribe them, do it. The mobile I took back the guy just left. We had to track him down not always easy. It sounds like your people are still at the mobile. See them and get the deed or bill of sale signed back to you.

The worst case would be if you have to actually foreclose. This will take time and effort on your part. Plus you will have lost many months worth of payments. All this time the park rent is not being paid along with the taxes. You’ll have to pay these items back. Not fun.

Get em out fast. From now on at the original closimng I am going to get my buyers to sign a quit claim deed back to me to be held in escrow in case they default.

How does a quit claim deed work? - Posted by DC (IL)

Posted by DC (IL) on August 18, 1999 at 09:38:08:

Phil,

Thanks for your post on this. I, too, am interested in alternate ways for MH repossession. My question is, what exactly is a quit claim deed and how does it work? Who draws it up (I am assuming this is an attorney thing)?

Also, if you are a lienholder on a title, wouldn’t the title be in your possession after it comes back from the State following the sale? In my state at least, if I finance a car through my bank, the bank keeps the title until I’ve paid it off. If the same were true for MH’s, I would think that all that was necessary to evict your non-paying buyers is to follow the procedures outlined by the city government.

Sorry for the long post, just trying to get an idea about the repossesion process.

Good posts. I’m printing both for my ‘Lonnie’ notebook. (nt) - Posted by SusanL.–FL

Posted by SusanL.–FL on August 18, 1999 at 08:44:05:

nt