A question about notes and mortgages.

[Bob Jones]

Hi,

I've got a noobie question that I'm hoping someone can help me with. 

Its my understanding that when people use seller financing to sell a mobile home in a park, they are recording a note, but they aren't recording a mortgage. If this is wrong, please correct me. 

If a note alone is enough for you to repossess a home, then why do people record mortgages for ordinary real estate? Why is a mortgage necessary when selling real estate with seller financing, but unnecessary when selling a mobile home with seller financing? Is it because mobile homes are personal property as opposed to real estate? 

Is anyone able to clear this up for me?

[Jeffrey H.]

Originally posted by @Bob Jones:

@Khenkis K.

I've studied a little bit of their material, and neither of them seem to be recording mortgages. Hence my confusion. 

You're supposed to record a Lien against the title of the mobile home if you're owner financing.  States vary how this is accomplished, but if it's not real property then a lien is 99% of the time how it works.

These liens can be viewed on the State website with their Serial # etc type information and is submitted to the state upon sale.  In Texas, for example, these are included on the Statement of Ownership and Location (SOL).  Much like a lien on a car's title.

Good luck.