Help with mobile home with no title.

[Steve Maginnis]

Hello all.  I am looking to buy a lakefront property with a circa 1960 single wide trailer.  The trailer has been completely enclosed and includes additions.  It's really in great shape for it's age. The property was purchased by an investor in February of this year.  They did a bit of work and are flipping it.  The problem is, they were not given a title to the mobile home when they purchased, and the courthouse is offering no help in obtaining one.  They say they only sold the real property.  Both the seller and myself have been working hard to track down the previous owner to have him sign over the title.  DMV states he had title in his name.  I have the VIN from the DMV.  Owner is unreachable.  

The seller feels they will sell the  property regardless and want us to buy it or step aside.  It's a good deal and we want the property.  Seller says they have some experience with this and that no one will ever question this in the future.  My concern is if we try to sell, refinance, etc. at a later date, the lender will want a title.  The lot itself is not quite worth the sale price, so the trailer has to provide some value in order to appraise.  I've been told there is a process in North Carolina where we have to send certified letter to the owner, then wait a while, place an ad in the local newspaper, wait 30 days, then file paperwork to show the trailer is abandoned.  Then I would have to go to the courthouse and buy it.  I'm told no one will try to buy it there because they can't move a 1960's trailer anyway.  Seems risky to me.  I don't want to be stuck paying thousands for a trailer I already possess.  

I spoke with a RE attorney, and he says there is another option.  He says we can file for a "Declaration of Intent" to have the trailer added as real property on my taxes.  This would show that RE taxes are being charged on it and not personal property taxes.  Still sounds a little risky to me.  He says most lenders will look to see that there are taxes paid so title must have been surrendered.  However, some lenders may ask for proof that title was surrendered.  

I  understand that in all likelihood nothing would ever come up if we do nothing.  I'm still concerned about when we go to sell it later. The buyer may not care if there is a title, but the lender may dig it up.  I don't even know for sure that the legal title holder won't come forward after we put thousands of dollars in to the trailer and say they want to move it.  Any advice on what we can/should do here?  Thanks in advance.  

[Ehsan Rishat]

@Steve Maginnis Seems like you have all your options laid bare and are having trouble deciding. These title issues do show up a lot and most of the times people end up going through with the deal even with the associated risks of the "what ifs". However, if this isn't a game-changing deal or one that will truly impact your portfolio massively, might be best to look for other deals. On the off chance, one of the potential risks come to haunt you in the future, you or the person you sell it to might take a substantial hit. So, you need to look at the risk to gain ratio and decide whether the deal is worth it. Hope this helps. 

Good Luck!