AboutMichael McClure Expertise I am a licensed specialist in mobile home sales in the South Bay area of So. California. I can answer questions related to buying and selling used homes that are already placed in parks, and placing NEW HOMES in park or private land. My previous banking background will also be of help to you re: financing questions.
I am not a lender, but may be able to head you in the right direction.....I DO provide financing for my customers!
Experience Many years of experience in the mobile/manufactured home business, as well as ten years major bank background.
Selling,listing and providing financing for used and new homes.....why pay the landlord's mortgage??
Pay your own, and have something for the future!
MMCCLURE@TROPHYHOMESINC.COM
310 386 1061
WWW.TROPHYHOMESINC.COM
Expert: Michael McClure Date: 7/14/2008 Subject: Rent to Own
Question QUESTION: I have gotten myself into a RTO contract on a mobile home that has turned into a money trap. Termites are everywhere around the foundation and have killed one tree in the yard. Because I needed to move immediately when I got into it, I did not have the place properly inspected (nor could I afford it). Also, due to foolish money management in the past, this is and was my only opportunity for home ownership which of course, is a lifelong dream. I am over 50 and pretty healthy and had huge plans to renovate and landscape but I'm not so sure now. Also, it is located one block from my sister which is the primary reason I jumped on it so quickly.
My monthly payments with the lot rent and gas are very affordable for me and thought of moving makes me cringe. I don't think it would take much to get out of the contract if that becomes necessary but I need some advice first.
The park managers have made it clear that there is nothing they can do about the termites. I am low income and only work about 30 hours a week so the cost is not feasible for me to hire pest control. I am over 50 and on the low end of the retirement savings scale if you know what I mean. Is it possible to treat them myself without costing a fortune? Most of the information I've read indicate that diy termite control isn't that effective.
Now for the legalities...After my contract is completed, the total price I will have paid for this mobile home is much more than it is worth as it is now. I have lived here for three years now and will have it paid off in 1 1/2 years. I'm worried that there is no title to it (based on the original management) and the only plate number I have is written on a sticky note - there is no actual plate! I am so confused whether to give up on it and move into an apartment or continue with the purchase and spend all the money I planned to spend on renovations and pest control.
Please help me figure out this mess as it is seriously stressing me out.
Thank you.
ANSWER: Hi Connie.....first let me tell you that I have never heard of a rent to own purchase. Was there a disclosure signed by you and the seller?
This should be part of the transaction by law, at which time the seller states that he is NOT aware of any problems such as you are having....(leaky roof. heat, etc, too)
If this form was signed by them, and they were aware that the termites existed, you will take them to small claims court and have them pay for repairs.....DIY DOES work for this by the way, but look for the disclosure first....write back if needed....."~ M
---------- FOLLOW-UP ----------
QUESTION: There was no disclosure presented or signed and because the original owners are no longer available, I don't know what recourse I might have. I did receive a LBP disclosure but nothing was ever signed concerning the condition of the mobile home. It is an older mobile home (1966) and the original owners who executed the contract are out of the country now. From what I understand the new owners just took over management and continued with what was already in process.
I suspect they established it as a rent to own because of the age (and most likely the condition) of the home. They obviously knew that it would not sell for what they would sell it for. I felt very fortunate to be able to get into it because there is no interest and I did not have to pay a huge down payment, but there is also no credit history building for the purchase which could have been a plus for me. The only paperwork signed is the original lease agreement for the mobile home and the lot and an addendum which indicates the term of the purchase and the price paid each month. One revision has been made but only to change the payment schedule and that was signed by myself and the new management company.
Thank you for looking into this.
Answer Hey Connie....first, lets look for the serial #. A small 2"x3" plate should be riveted to the rear of the home....two if a double-wide. It may have been painted over, but still readable.....next look in the master bedroom closet. On the wall they sometimes pasted a description, with all numbers.
Ask the neighbors if the owner ever mentioned termites to them....their statements may help in a small claims suit!
You or the park should have a copy of the registration in your possession. You MUST get the reg., and or title to protect yourself!
Save your cancelled checks for payment on the place....some lenders will still consider this as a valid credit point!
Foam works well for infestations, but I would like to see the seller pay this!
