Expert: Michael McClure - 5/5/2009

Question
QUESTION: Hello,
My question is similar to another you answered a couple years ago...

My sister was working for 14 years at the same job, and they recently laid her off.  She can't afford her San Jose apartment anymore, so I agreed to help her and her son get into a mobile home.  However, since she doesn't currently have stable income (and poor credit), the home has to be in my name.  Also, I have to live there "on paper" since the park has an owner-occupancy rule, but really I will continue to live in my own apartment 50 miles away.  I will have to make the space rent payments, for which my sister has agreed to reimburse me.  

We used an agent to find the mobile home.  He thinks there shouldn't be a problem, since my income and credit are quite good.  He says it's a "don't ask, don't tell" situation.  We already have a signed agreement for a cash sale, and are currently waiting for park approval.  My sister and her son are listed on the application as "additional occupants".

I guess my question would be: is it common for park managers to wink at such arrangements, or should we be concerned about being evicted if it's discovered that I'm almost never there?  

Thanks for your time.

ANSWER: Hello....from what you have told me, "you travel all the time for your job, and are rarely home."

The whole deal is over the quote "rental" of a mobile, which is usually not allowed by the state. If the owner does not live there, it will be looked at as a rental.  Parks do a C.Y.A. approach to this, and if the park is large enough, shouldn't be an issue.
The simplest way is to put Sis on the title, unless you are getting a loan.
I would say "MUMS" the word.... M


---------- FOLLOW-UP ----------

QUESTION: Thanks Michael, I do like your assessment of my job travels...

Unfortunately, can't put my sister on the title, as her credit is so poor it would likely disqualify us for park approval (so says our agent).  Later when she is working steady again, and her credit improves, will probably sell the home to her.

Answer
Barnett,
If you are paying cash, just have the escrow company put your Sis's name on it....also put your name as legal owner, just in case something goes screwy in the future; this way you can protect your interest! The park will not know.  Their concerns are limited to payment of space rent, and by signing the lease, you are obliged....the only issue I can think of is that if the park is very small and everyone knows everyone else's business.  Good luck MM