Expert: Michael McClure - 11/23/2010

Question
Hello,
I am interested in buying a mobile home from a friend of mine. They bought the home with owner financing from an owner who didn't pay his mortgage. They got a call from the bank saying they were foreclosing on the trailer and they had to move out. The couple moved out of the trailer a year ago, however, the bank never came to claim the trailer. The trailer has sat empty on their property for over a year. Their lawyer said it was okay for them to sell the trailer, however, they don't have the title. I am interested in buying it for an investment so I want to be able to re-sell the mobile home eventually.  Any advice is appreciated!  Thanks!

Answer
Hi Janelle....the fact that the home is still there doesn't mean the bank has no interest in it.  Most banks gave gotten out of this type of lending because they didn't understand that the PARK has the priority lien.

My suggestion is to #1.  Go to the park and talk to the manager, they may be the new owners of record.  #2. If not, you will need to contact that bank and tell them of your interest.  My guess is that the bank still physically has the title and may be happy to have you come along and bail them out!
Ask how much is owed on the home, and offer about a third of that amount!
The park should be contacted first, as someone has been making the space rental payments....what state is this in?   "~ Mike