A Deal Pickle - (sorry...long)
I've been reading here for several weeks and just joined today.
My first deal ihas not gone well. I sold an 18 year old mobile home on contract, "as is", in very good condition. I secured the down payment and then not one payment was made until I became a collector. 1st payment date missed; two weeks later went to discuss/collect $ Got several sob stories; promised x $ within 4 weeks. When that payment was made (late) it was not the agreed to amount. I have tried phoning with no return calls and have been by to discuss/collect. Last visit I had a rifle pointed at me and told to leave as I was trespassing and the sheriff was called The county sheriff says I can't "bother" them again or I will be arrested. Huh? But a gun can be pointed at me? They told the sheriff they WANT me to sue them so I should stay away and pursue through the legal system.
I have been to the county courthouse to secure eviction papers, but there is another form for small claims suit that has a box to check for "contract". Which is it? Are they tenants or buyers? Do I evict or file suit for breach of contract?
There is only about 15% of the purchase price owed. However, I sold this property at a loss to begin with trying to "help" a young couple get started. I have also helped them in other ways and I am not willing to take any more of a loss. They are deadbeats to the core. It is not as though they don't have the money because they have renovated extensively and have purchased new (older) cars.
I am concerned about the statement they made about wanting me to file suit. It sounds as though they are after a windfall of some sort. We did what I consider a walk through before signing the contract and that was after they had looked at the property twice before.
This is getting too long...my main questions are: do I go the eviction route, get an attorney in light of their wanting me to file suit, and how can I collect if the sheriff says I can't "bother" them anymore? I want them out so I can sell this property again. I'm in Indiana. Thanks to anyone who can give me guidance.
If you have a sale contract then you should foreclose on the property as they are buyers and not rentors. If you gave them a lease/option then you can evict them.
The problem is that forclosure will take longer than eviction in most cases. It sounds like they don't have any intension of completing the deal so whatever you do, do it as soon as possible. The longer you wait, the longer they will live off of you for free.
Thank you for replying. I explained the situation to the clerk at the courthouse and she insisted I use the form for evictions. I went back a few days later to again, talked to someone else, and got the same answer. I know they are not there to provide any counsel, but why would they insist this is an eviction situation when I've explained they are buying the home on contract?
I've researched the Indiana government websites until I have information overload. I am hesitant to secure an attorney because what they owe is probably less than the attorney fees would be. However, knowing their behavior, I will call an attorney anyway.
In this state, purchasing a used mobile home is like buying a car. When payment is complete, you sign over the title. So does that still fall within the foreclosure arena? Since they have not completed this process, I have now had to pay the spring property taxes so they will not be delinquent. Can I add this amount to what they owe me?
I guess I will study the foreclosure process now because if that is what I need to do it is far different than what I've so far been instructed to do from the county.
Thanks again. I know I should have been more selective in my first sale, but I knowingly took a loss in price chalking the loss off to gaining experience. That loss has bought be a LOT of experience...not all good. But, I'm moving forward.
I don't think they are after a "windfall" in the sense of them collecting a judgement against you. These guys sound like professionals. They know full well that the court will tell them to get out but they also know that it will take months for that to happen and they get to live rent free until it does! Then they are free to move on to their next victim. You really need to talk to a lawyer on this one. Maybe you can give them an incentive to leave? $100 if they are out in two days? Don't know if it work but maybe someone else here has tried it. I think this is a wake up call to all of us--sometimes it just doesn't pay to be nice!
Best of luck--keep us posted!
[ Edited by tntmoz on Date 07/29/2003 ]
Scary stuff!
I just sold a MH and I used the contract for sale as used in Real Estate only changed the words Real Estate to Mobile Home and its VIN number. I also had the buyer sign a Cognovit Promissory Note, signed and notarized ALL papers. I kept the title in my name and still posses it. I told the buyer that he will get it after he refinances the loan, which is in my name. The payments are being sent by the buyer to a loan servicing company and they will send the payments to the appropiate places. I also made him sign an automatic withdrawal form so the monthly payment will be made in time.
I tried to cover all bases as best I could, because the guy has never ever been a homeowner before, and needs to build up his credit, so I helped him but also made sure I would not lose on this deal, especially since I am just starting out.
I am, maybe, about to buy another MH, this one Subject to and when I sell, I will do it the same way: the title will be mine till the buyer refinances!
Hope this will help others, and maybe somebody with more experience can suggest other avenues to go.
I am sorry for you that the deal wnt soo wrong. Some people just don't deserve to be helped! I hope you find a GOOD attorney who will help you and not clean you out!
Ladybug
I had to leave yesterday an just got back to read the additional replies.
I do have the title in my posession and they won't get it until the entire balance is paid. However, since they failed to fulfill the contract I had to pay the spring taxes because the title bears my name.
The contract was very specific, but it was not a standard RE contract; it was one I had strictly for the sale of a mobile home. I listed the make, model, year, VIN and all items included in the sale as well as the down payment amount and the installment payment due dates and amounts.
What I don't understand is that I can't contact them to try to collect the money and keep it out of the court system. The deputy even provided me with an attorney's name to contact. Huh? Drumming up business in our small community? The Fair Lending Act states that a collector is one who collects on a regular basis, i.e. collection agents, attys, etc.. All other collections are open territory with a few rules. I should be able to collect this money without having a gun pointed at me.
Anyway, I'll be looking into the foreclosure action today. I just want them out so I can resell and move on to my next deal. This one has been draining.
And yes, these two seem like professional deadbeats. I have learned a hard lesson but it won't keep me from charging toward my next deal.
Thanks again to all responders. This is a great place to find help and get support.
You definitely need to contact an attorney for this mess. With a mobile home, depending on contracts signed and the way the title/deed is made (is MH attached to the land) you could either have to foreclose, eviction, or simply repossess the home. Repossession would be the quickest, easiest method, but again, let an attorney advise you on what to do.
You can still 'attempt to collect' the legal way, which is thru the mail, but as already mentioned, the people are professional tenants and have no intention of moving.
You could offer money in exchange for a peaceful, quick, and clean move. You'll have to offer more than $100 bucks, but you'll spend more in costs to eviction, etc than that anyway.
If you want to consider this route, I suggest offering a minimum of $500 if they are out by next Friday. Their stuff needs to be out, the home in broom clean condition, and they would have to sign a "I have moved of my own free will" form. After an inspection of the place and they hand you the keys, you'll give them the check. I'd even offer to pay for the U-haul truck (in their name of course. Just in case they decide they like it, too ).
As before, you might want to run this by an attorney (especially in this case).
Roger
Traditionally, the methodology for mobile homes is NOT a foreclosure. You have the title, therefore it is not real property, but a motor vehicle. You need to file the 3 day notice to vacate and then file eviction proceedings in your locale. An attorney is best, but you should have the title in their name with you as lienholder. After the eviction proceedings have been completed for non payment of rent, you will have the police on your side, and they will stand by to keep the peace, while you have their stuff put out by the curb. Most of the time, my people move while I am standing in front of the judge.
Good luck,
Shawn(OH)