manufactured home de-titlement issues

I'm working with Chase regarding a manufactured home in foreclosure.  The home, as we have found out, was never de-titled after purchase by the owners who are currently in default.  As far as I understand it, it makes the home less valuable because it is considered a trailer on land until it is de-titled (DMV issue).  Our plan is to purchase, de-title during holding period, then re-sell as real property (desirable home, nice area, .75 acre lot).

 

Lenders I've talked with tell me the property - not de-titled - is harder to get conventional lending on under current lending practices.  De-titling the home will take roughly 2 months, which means the lender will have to hold the home longer if they get it back as and REO.

 

Does anyone have any links, thoughts or experiences with providing the lender the info to show them the de-titling issue is valid for decreasing the value of the property?

 

Thanks!

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Permalink Reply by Jeff Payne on March 22, 2011 at 9:29am

Warren,

In Florida we "retire" the titles.  Never had any issues with it

Permalink Reply by warren smith on March 22, 2011 at 10:05am

Same here by a different name.  The trouble is that the title was never retired.  It is still considered trailer on land.  Do you have any experience with valuation of property being different if the home is or is not retired?

 

Thanks



Jeff Payne said:

Warren,

In Florida we "retire" the titles.  Never had any issues with it

Permalink Reply by Jeff Payne on March 22, 2011 at 10:36am
warren, talk to your title company about  retiring the title, my title company has always done this for us when needed
Permalink Reply by warren smith on March 22, 2011 at 11:46am

Thanks Jeff.  

 

We know the process to retire the title, and will do so only after we purchase the property or get the approval to purchase and are moving in the direction to buy.  Otherwise, we won't incur the cost and provide the lender with that service if they continue to move forward with foreclosure:  they can deal with it and hold the home for the length of time needed to do so.

 

All I'm after is some input regarding valuation of property differences with or without the title being retired. 

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