Expert: Michael McClure - 2/25/2010

Question
I want to sell my Manf. home to a young couple who does not have any credit to get a loan - yet.  They need a year to build credit.  They have been approved by the community to sign the lease for the lot rent.  However, the community is an 'owner occupied' community  ONLY and the couple will not have 'Title' until they can get the loan in 12 months.  They are willing to pay me a small amount on the home and sign a 'Installment Agreement' stating they will get financing in 12 months and pay off the full amount at that time.  Here's my question...they want me to put their names on the title - not as an owner - just 'on the title' (I will still keep possession of the title) so the Management accepts them as an 'owner' (which they said they already will do this) and they can take possession.  If I state in this 'Installment Agreement' that after 12 mos if they are not able to pay me in full that the agreement becomes 'null and void' and their name is removed from the title?  What kind of legal mess could I be getting into?  The title will NOT be going into any other hands but my own until the transaction at the end of the 'Agreement'.  But what happens then?  Is the title turned over to their financial people?  I don't know how to do this and don't want to get myself into something I'll regret.  Please help.

Answer
Hi Amy...just think of this transaction as a car sale.  You buy the car and the bank puts their name on as legal owner....you are registered owner. When they get their loan, the sale will go through escrow.  You will release your interest upon payment.
When you do the loan doc., you can put whatever you want on it....as long as you both sign it.

I'm a little concerned about the park approving someone who has NO CREDIT.  Make sure of this before going ahead. You don't want to be liable if the people default.
Also make sure that your state laws are such that the park can't take the home for non payment of space rent

You shpuld be OK...just be smart....good luck.   "~ Mike