Titles & Back Taxes on Mobile Homes in Georgia

Titles & Back Taxes on Mobile Homes in Georgia

Rural Hall, NC · Member since 2012 · 36 posts · 1 vote

We purchased a 56-lot MHP in Georgia on March 1, 2013. It was bank-owned for 3 years and suffered from neglect. We're trying to get it turned around and have done 11 evictions so far (of 39 occupied lots).

The problem we're facing is that the residents don't legally own their homes, so when they're evicted, they just leave them. Most bought them 3 years ago and didn't want to pay the back taxes, so they never transferred them to their names. The tax office has done nothing about it, since they felt nobody would bid on them at a tax sale (they're older and in poor condition). As a result, taxes haven't been paid on many in 7 years and they're in excess of $1000. Many of the homes aren't worth that. The tax office won't budge on the amount. The city condemned/demolished a number of homes just before we bought it and there are others that are 'borderline' to being condemned at taxpayer's expense.

The second problem we're facing is trying to identify the legal owner of the homes. We obtained copies of the titles to most of them, but they're in a business name and nobody (Secretary of State, Clerk of Court, Tax Office, or DMV) seems to know who is legally responsible for the business. Two different individuals claim it's them.

Many of the residents have titles signed by one of the individuals who claim ownership (and we believe he's the rightful owner). They paid for the home and own it (have signed title), but since they never titled it in their name (to avoid taxes), they're not recognized as the legal owner. I wouldn't think it would do us any good to obtain a judgment against that person because I don't think we can place a lien against the home if it's not in their name.

We've consulted with two attorneys on the matter, neither of which could give us clear direction. Both said it was not worth pursuing abandoned titles. One suggested a Title Bond company, but when I called a company and explained the situation, they wouldn't get involved.

As we do evictions, the homes sit vacant. We've tried to have them hauled off, but we can't even do that without a title. Our other option is to try to get the city to condemn/demolish them, but we'd like to try to salvage those that can be rehabbed.

Cumulatively, there's more than $20,000 in back taxes owed. We feel like the County should have addressed the issue 7 years ago, before the taxes and penalties exceeded the value of the homes. And because they didn't, we feel like they should reduce the amount in order to get them back on the tax roles, but they refuse. The person who says he owns the business that owns the homes is willing to obtain duplicate titles, but the tax office won't issue duplicates until all $20k in back taxes are paid. We feel like their negligence contributed to the situation and they're going to get nothing otherwise (if the city condemns/demolishes the homes), but they insist on the full amount. I feel like we're being held hostage by the tax office because if nobody will pay more in taxes than the home is worth, they will continue to sit on our property without generating any lot rent and while devaluing the park.

It also seems like some government agency would be responsible for maintaining a record of an individual responsible for a business name, particularly when a vehicle is titled in the business name, but thus far, we've been unsuccessful in obtaining such info.

Can anyone offer any insight on how we may resolve the title and tax info? State is GA.

Many thanks.

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  • Ned CareyPro Member
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    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    What do your leases and state law say about abandoned Mobile homes? I would thing that if the park does not own the homes that an eviction would mean you are "evicting" both the home and the tenant. That seems the obvious question to be asking your attorney.

    Isn't a mobile home considered personal property? Personal property left behind is considered abandoned in an eviction in MD. The landlord can do anything he or she wants with it.

    These issues should have come up in your due diligence when purchasing the property. Good luck - Ned

  • Rural Hall, NC · Member since 2012 · 36 posts · 1 vote
    13y

    Thanks Ned. We don't have any leases. Most of the tenants moved in during the bank's ownership and there were no applications or leases. We're requiring leases, but it's been difficult to get the residents to respond and comply.

    State law has procedures for abandoned mobile homes, but both attorneys I met with said that was not an avenue worth pursuing. They estimated it would cost $1200-$1500 and one attorney said he had never been successful. And they said that the taxes would have to be paid regardless. I met with someone from the tax office who said the County would consider holding a tax sale, but the bidding would begin at the amount of back taxes owed + title search fee + publication costs. The homes aren't worth that, so nobody would bid. He said they'd go back on the books with all the back taxes still against them - and continuing to accumulate.

    When we obtained the Writs, the judge said we had the right to tow the homes after 10 days, but we can't find a company willing to tow them without a title because they can't do anything with them either. (If they could even be towed safely due to their age/condition.) Our attorney said we can't demolish/scrap them without title.

    We were somewhat aware of the title issue prior to purchasing the park, but since we weren't buying any homes, we weren't overly concerned. We assumed that the DMV would know who legally owned the homes. And we didn't realize the back taxes would/could go unpaid for 7 years and accumulate to such an amount. The homes are drastically overvalued. I was in one that has only one working electrical circuit, no floor coverings, had a hole in the roof, rotten floors, etc. The County values it at more than $4500. One in better shape recently sold for $200 and there were no back taxes due because the County didn't know it existed - despite being in the park for 12+ years. Park owners are supposed to provide an annual report of homes in the park, but the former owners didn't bother and the County never enforced it. There are penalties for not displaying a current tax sticker on the mobiles, but they're not enforced either.

    I think the current year's taxes could be appealed, but they won't do anything for the arrears.

    Thanks again.

  • Hooks, TX · Member since 2013 · 3 posts · 0 votes
    13y

    I dont have the answer to your problem. I wish I did. Let me just throw some things out there and maybe it will make a spark with someone that can help. If your in the city limits get the homes declared uninhabitable. They are a danger so maybe city will get rid of them plus you have children in your park and your worried about them getting hurt in these dangerous structures or maybe health hazards. Talk to the city attorney and express your concerns maybe he will feel its in the best interest of the city to do something about this. Squeaky wheel get the oil, get on the city council agenda for that month and tell them you are trying to clean up and bring in more houses and increase the city tax base plus those new houses will add to the water and sewer and trash base. Paint the picture of more money and they will start seeing it your way. I hope this helps. I have went thru abandoned trailers in my park and have been lucky the tax assessor would work with me but have not been in your position. I will be reading to see how it turns out. Please post your outcome.

  • MHP investor from Johns Creek, GA · Member since 2014 · 123 posts · 31 votes
    11y

    Hi Cindy - Were you ever able to obtain titles on these?  Was this ever resolved?

  • Flipper/Rehabber · Gilbert, AZ · Member since 2015 · 5 posts · 1 vote
    11y

    I have had two guys demolish mobile homes in about 3 days and put them in 40 yard dumpsters. The tax is on the previous owner I would think. I would check with an attorney but if they are on your property and in disrepair you should be able to tear them down.

    I buy parks myself and I am looking for someone to work with, drop me an email.

    I have cleaned up some messy places, I get abandonment titles her in Arizona with no problem, but if the tax is higher than they are worth you may not want them.

    Jim [email protected] drop me an email

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