Expert: Dick Dennis - 6/2/2011

Question
15 years ago friend was divorcing, he received modular homeand 2 acres in the divorce.(Not real property) We went to county courthouse he quitclaimed to us, the modular and land. (now we find actually in the quit claim it was just the land. Seller nor I realized we needed to do something for the land too. The loan is still in previous owners name. The loan is from GreenTree (formally Conseco had loan) GreenTree says they no longer do loans and cannot help with transferring into our name. Other lenders wont lend to mobils with no foundation. We have put fence around the two acres and our afraid to do much more with this not being in our name. We thought of taking out 401k to put foundation. But dont want to take the chance of paying that out and not getting this home. Greentree sends the paymnent recipets in the previous owners name with C/O our name underneath. One customer care said we r renters another said no we r fine. When title search is done land comes up in our name but the land and home is in one package loan. Prevoius owner may of filed BK. Before or after  quitclaim Im not sure. How can I get loan in our name if G.Tree says no loan dept and its not on foundation, and we cannot pay out right. There is about 25-30 thousand equity. We live in Elko Nevada.(subburb:Spring Creek)

Answer
First of all, Dawn, the land is in your name because that is all you really need. Because the modular home is not connected to the land (apparently no base or foundation connected between the house and land), the house is NOT real estate. It is classified as PERSONAL PROPERTY, very similar to your automobile.

However, the loan is in the name of the person who originally financed the house and land package. Today's tight-money situation makes it very difficult to get a refinance and change the loan to your name. So, as long as you are making the payments as you have for the past 15 years, you shouldn't have any problems although you are in a precarious legal position. The bank (lender) really doesn't want to mess with this because you have been making payments regularly for so long.

When you originally bought the properties (land and modular home), you should have received title to your house much like you received title to your car and you should have been paying taxes on it like your car each year. Also, you should have been paying taxes on the land, too. As long as you have been paying the land and house payments, as long as you have been paying the necessary taxes on both, I don't see you having much of a problem, Dawn. If you want to improve your property, it would seem to me you have the perfect right to do so.

If you are willing to pay for the construction of a foundation underneath your house, go right ahead. The county will assess your property WITH the house because you will have paid for and obtained a permit to do so. THEN the house will become real estate. But that does not alter the nature of the loan you've been paying on all this time. It does mean that if the land should ever fall into foreclosure, the house would be included. Right now, if the land should fall into foreclosure, you could arrange for the removal of the house to another location if you wanted.

You can go talk to the county tax collector to make sure your taxes are up to date. You will have to check with the DMV to make sure the taxes on the modular home is all right. I do wish you well.

Dick Dennis
dixiedee13@aol.com