Is This My Bill to Pay?

Question

My IRA holds the lien on a MH in a park in Texas.  Buyer is not paying.  Park has already filed for eviction for non-payment of lot rent and received a judgment.  I have filed for eviction (repossession) and should receive a judgment in a few days.  I plan to move the home out of this park because they are very difficult to deal with.

1) Since I do not have a signed lot lease, am I under any obligation to pay the back lot rent and late fees to the park that buyer should be paying?

2) Does the mover have to notify the park before moving the home out?

3) Can the park stop the move in any way?

4) What suggestions do you have for me to get this home out with the least amount of hassle and expense?

Jim Johnson · Answer

My experience is not the same as Joes-

So- there are a lot of things going on here. I own a few parks in Texas so maybe I can shed some light onto the situation.

1) You could be liable for the back amounts owed, depending on how all of the legal papers were filed.

2) No. But in Texas the mover MUST be licensed, and must pull the proper permits in order to move the home. The home can only be moved on certain days and times in Texas.

3) The park can stop it with a judgement and a RIT. So yes they can. But again, all the paper work needs to have been done with that in mind.

4) I am not sure where you are located, but you call a mover and have the home pulled out. Many parks, mine included pay for homes to move into our parks. So I pay the move fees if a home is pulled in. The home must meet the city code, but that is pretty easy most of the time. So call a move and at least get it out of the park. Once that is done, the owner of the park can not go after you UNLESS you were named in the suit and unless he has a judgement against you.

If you are anywhere close to the Valley, or to the Dallas / Ft Wroth area- drop me a line and we can discuss pulling it into one of my parks. I am very, very friendly to people that own and sell homes in my parks.

As a side note- I have owned and financed well over 100 homes in other peoples parks, and I still hold financing on many of those homes.

Account Closed · Answer

In CA the post eviction judgment the park received against the owner would allow them to take possession and the sell the MH in order to recoup the judgment dollar amount.  So if you didn't pay, they would sell it. I know it's late, but IMO you were supposed to act before the park did.  Even if your borrower was paying you, the promissory note should contain language that makes being late on park rent a default of the terms.  You should be getting notice before your borrower is so far in default on park rent that that they are filing for eviction.

If it were me I'd not try to move the home.  Regardless of how difficult the park is to deal with, in a properly executed MH deal, the MH owner deals with the park, not you.  Do what you have to do to vacate the MH and settle with the park.  Re-sell to a qualified buyer with a decent sized down. If you want to be out of the deal entirely, create good paper that you can sell easily after closing.

John Fedro · Answer

Hi Jackie,

I regret that things have gotten this bad for you with this property. It can feel like you're caught between a rock and a hard place in a situation like this. 
	
	I have placed my thoughts below. Keep in mind I am not an attorney. I would also suggest calling the THDCA at (512) 475-2200 and explaining your situation.

1) Since I do not have a signed lot lease, am I under any obligation to pay the back lot rent and late fees to the park that buyer should be paying? As Joe stated the park will simply not allow and stop the home from being moved until the lot rent is paid in full.

2) Does the mover have to notify the park before moving the home out? If it is a reputable mover yes.

3) Can the park stop the move in any way? Calling the police for trespassing when the mover comes to measure and prep the home for moving.

4) What suggestions do you have for me to get this home out with the least amount of hassle and expense? Good question. A large part of my coming answer will be based on the condition, size, and look of the home. If the home is in good shape with potential then pay the back fees (hopefully under $3,000) and resell for payments for a large profit. If the home is in a full rehab I would consider giving it to the park, if they even want it. 
	
	Like Joe above I am curious why this park is hard to work with. I have only ran into 2 parks that were difficult to work with. However as long as their lot rent was paid they were pretty harmless most of the time. If the application process is a nightmare that can also cause problems. If you explain to them that you are considering moving the home but you don't want to end on a bad note, this might help start a conversation towards a win-win resolution. "How can we work together to keep the home in the park and have the park feel compensated?" With that said if they are jerks then pay the back amount and get ready to move it. Are you going after the deadbeat tenant-buyer for monies owed?
	
	Hopefully the home is a singlewide and therefore much easier to move should you really move it. Some parks will pay for your move and set up if you agree to keep the home in the park for X number of years. This could be a strategy to move to a nearby park you do like.

Hope this helps and makes sense.
	
	Thanks for the shout out Andrew S.
	
	Talk soon,
	John Fedro

Account Closed · Answer

@Jackie P.,

The park can keep you from moving the home until all rent is paid to the park. Anyone moving a home out of a mobile home park must get permission from the park and provide the park with a copy of their insurance. You might be better to sell it to the park but realize the park might only pay auction price. Why do you say they are very difficult to deal with?

Joe Gore

Andrew S. · Answer

interesting scenario - I don't have answers but I bet @John Fedro

might!

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