How does a lienholder regain title after occupants default?

Question

I have a mobile home in a park.  I owner financed the trailer.  I am listed on the title as the lienholder.  The occupants are 2 months behind on payments.  I have sent them certified and first class letter warning them they are behind.  I have two questions:

1)  Since a mobile home is personal property in Missouri rather than real property, will I have to go through a formal foreclosure?  I am thinking it would be more like repossession of a vehicle but complicated by the fact that it is occupied.  Do I technically have to evict first even thought I technically don't have a rental agreement but rather a note/loan agreement.

2)  If would to try to regain the title by telling the occupants that if they sign over the trailer to me that I would not take them to court over the missed payments.  (similar to a cash for keys)  If I were able to convince them of this, would they just sign on the sellers spot on the title?  (I have the title and am listed as the lienholder)

Is there a better way to handle this situation?

Thanks in advance for the advice!

Sandy

Account Closed · Answer

In most jurisdictions in the U.S.A. if a person is unlawfully in a residence, mobile home or otherwise, you have to evict if you don't approve of them being there. In court you would argue they have violated the terms of agreement and are causing you damage and the remedy is for them to vacate the property. The court will probably order them to bring the amount current in 48 hours (or whatever time frame) with a stipulation that they must vacate if they don't.

The current state of eviction moratoriums are capricious and random by state, so no telling the judge's stance on that part and what will be ordered.

Ownership and foreclosure/repossession is a separate matter. That needs to be answered by a local attorney.

Kim Tucker · Answer

You might reach out to the guys behind MobileHomeUniversity.com - by the way, they live and own mobile home parks in Missouri

Michael Plante · Answer

Maybe this?

https://dor.mo.gov/motor-vehic...

Rachel H. · Answer

@Sandy Uhlmann What you can and can't do will depend on your local area. You may want to talk to the government entity in charge of titling and re-titling mobile homes in your area to see what options you have to take the home back. I'm sure they've encountered this question in the past with owners in the same situation. They may be able to point you in the right direction.

Since you have a note/loan agreement, there should be a court that handles these types of cases in your area. You just need to know which one so you can inquire about the process. Hopefully, you'll be able to find it.

If you want to do a "cash for keys" situation, you'll need to make sure the buyers are in agreement with the idea. If not, you'll have to go through the formal process. Regarding the paperwork to get the home back if they do agree, it's just a matter of talking to the local government entity in your area to see what you need to do to take back the home if they are in agreement.

Hope that helps!

Cara Lonsdale · Answer

I am not in your market, but this seems like a sticky situation.  I can't answer to all of it, but there are a few things I can answer to.

First, it really depends on what type of title they/you have.  My assumption based on your comments is that it is personal property, and not real property.  So, foreclosure is out (unless owners converted it to Real property.  This can be done in a few states, under a few circumstances, but I don't think this is applicable based on your comments.)

So, you have to repossess.  Now, it's just a matter of how.  My guess is that it will be required to go through the courts since you can't repossess without disrupting the peace (people living in it) and without taking their other belongings.  I would suggest looking into the process for Replevin.  This is a process where you as a creditor, file a lawsuit in court, and ask the courts for permission to repossess through an order of repossession.  This seems to me to be the only viable option outside of paying them to leave on the own accord.