Mhp Wants New Resident To Hold Title
some of the area mhp i have been trying to deal with are requesting that the new tenant have title to the mh in their name. since i am financing these homes for them, the titles will not be in their names until closing, usually three years from now. anyone have any ideas on how to get around this?
I know litle about OH law, but in most states with which I have some knowledge, a MH LEGAL title is held commonly by the lender...and the buyer holds the REGISTERED title.
So look carefully at OH law and see if it's the same...this way, the MH buyer will have REG title, as the MHP requires, while you, the lender will hold the LEG.
title.
Stop in and talk to one or two of the more experienced MHP mgrs, and I"m sure they'll tell you no problem with your financing and holding the leg. title until you're paid.
Based on my experience the MHP mgrs' objection really is he doesn't want a 3d party to own the MH and be renting to somebody else...no MHP likes that deal if they're smart.
John said it pretty well.
For a another perspective, consider how you would buy a car if you were getting a loan. You would be the "owner" and lender who have a way to secure their interest so you could not just sell the car without paying the loan.
The MHP managers are just asking the same. You want to be listed as the lender and not the owner of the MH. Lonnie and others are clear about this. Otherwise you can be sued if something happens on the property. Hence your interest and the MHP manager's interests line up.
John
[addsig]
Chrestoff,
Your buyer should have the title in their name, else you are liable for any thing that happens there as you are considered the owned by the state. Also the "buyers" cannot get insurance as they do not technally own the moble etc. all kinds of potential problems.
The process in Ohio is simple.
Get Power of Attornies to do legal transactions with this property from your buyers. These are Notorized.
Goto the tax office get the tax stamp, goto the auditors office and pay the Ohio convanance fee's. $0.10 /$100.00 +$0.50
Then goto a bank and sign the Title over to them (You fill out the top as the seller and then fill in the bottom for them in front of a notory with your POS's and have it notorized with them as the new owners)
Then go to the Title office and record the new title with you as the leanholder. You must have the Promasory note with you.
The title office will record the title, the lean and issue the new title. and a MEMORANDUM Title. (this is a white cope of the title and is only good to show ownership).
The costs at the title office are $20.00 ($5 for Title (You keep), $5 for Memorandum title (they get), $5 for archive fees (because they can charge it) and $5 to record the lien)
Jeff
Just to clairify my post a little. Going to a bank is to use their notory service to transfer the title to the "Buyer" You MUST have POA and need their S.S.#'s
Recording a lean is simple and easy. Just bring all your paperwork and be prepaired to battle a little red tape.
P.S. do not make any errors on that title else you will have a red tape mess on your hands getting new title issued.
Also, remember in Ohio Moble's are treated like cars.
jeff, thanks for all the info.
one more thing. if i go about this the way you have outlined, when the new owners default or if they just want to leave, how do i get the title back in my name?
You will have to take the following action:
Possession Without Breach of the Peace Unless otherwise agreed a secured party has, on default, the right to take possession of the collateral. In taking possession a secured party may proceed without judicial process only if this can be done without breach of the peace. If not, a legal action may proceed. See Ohio Revised Code Section 1309.46
I would suggest a full review of Uniform Commercial Code, Ohio Revised Code, Ohio's Credit Laws, and Ohio Consumer Law.
[addsig]
If it is a friendly transfer, then you would bring them the title and they would sign it over to you just as if you were buying it. Then you can get the title re issued into your name.
Although, as a lawyer, I'm totally capable of filing any kind of legal complaint myself, without fee to outside lawyer, I just want to go on record and say (cross my fingers and eyes
) I"ve never had to file eviction compaint.
I'm a firm believer in making love not war, and every time I've wanted rid of a tenant or MH defaulter, I've been able to talk the T or MH B out of the property...WITHOUT his tearing up the place.