Expert: Dick Dennis - 4/4/2005

Question
We are buying a mobile home from a friend. I used examples of contracts from different sites but am not sure if it will hold up if something were to go wrong. I think I should have an attorney draw one up.
Because they are not finished paying for it themselves, everything is still in their name including the insurance and taxes(trusting, aren't I)If it was understood that I was buying this and nothing ever went wrong, should I be paying the insurance and taxes on it now? And am I missing out on something tax wise. I haven't been able to find any advice on legalities of buying through a friend.

Answer
It depends on the state, but in most places a mobile home is treated in the same category as a motor vehicle. So, I am sure you will be required to have to pay taxes and insurance. It is wise, however, that you are consulting with an attorney in your state. But please make sure it is an attorney knowledgeable with mobile homes. Some don't know any more than you do. Guaranteed. And they will bluff their way through just to get a fee.

That having been said, there is nothing that says you can't take over their loan situation. There might be some requirements in your state for financing a mobile home. If you have good credit you should have no problem taking the loan over (subject to). DO NOT ASSUME THE LOAN.

Only once you have moved in and have taken the title and loan "subject to" should you get insurance or worry about taxes. Fair is fair.

Here is an idea for you! This man is probably the most knowledgeable about mobile homes in this country: Lonnie Scruggs. He is located in the Virginia area. Look him up on the Internet by pulling up his name. You take it from there and I am sure you will be just fine.

I wish you well.

Dick Dennis      dixiedee13@aol.com