Liens on Title(s)

If your seller bought the mobile home with the help of a bank, private loan, seller financing, or professional investor, there may be a name and address under the ‘1st Lien’ space of the title(s). This is the name and address of the person who was holding the lien.

Directly under the space with “name and address of 1st Lien Holder” is a signature line. The signature is signed by the above name when the seller has paid their debt in full. The Lien holder signs the title here, and hands it over to the home owner. Now the home has a free and clear title.

If there was a 1st lien it should always be signed off. This will allow the title to be transferred. There is no check or questioning done here. You bet the bank that is owed money is holding on to that title for dear life, it will allow the bank to do an eviction if needed. *We never have to worry about title transfer behind our back the way we sell mobile homes. Title is kept untouched until we are paid off by our buyer. Our trust plays owner until they finish paying us off.

If there are any liens still active on his home; in other words if the seller stills owes a bank or private person money on the home, the seller should not have the title in hand. If the DMV messes up, or a bank accidently writes the wrong address and sends the title to the home owner. A dishonest home owner would sign off on the ‘lien signature line’; then reissue the title(s). Presto!  Now with no more liens… the bank would come after you.  I never condone doing this if you get the opportunity.  (IT IS SLIGHTLY MORE COMPLICATED BUT YOU GET THE IDEA… THE ONE WITH THE TITLE HAS THE POSSESSION.)  No notaries are needed to witness a mobile home title signing.

Case study:  I need to get off to bed but this is a great story!  I bought a mobile home from a lady who had title with a lein holder but the title had been signed by the lein holder… or so i thought.  She did have title, and I figured there where no leins currently.

Apperently the person who my seller bought it from had given her the title with the pomis for my lady to pay her a few thousand in monthly installments (i forget the terms).  Once title transferred, the previous previous owner came to me and threatened to sue if she didnt get her $1200 or so dollars back.  I tried to reason with her but she kept insisteing I owed her money.  She said she would “consult an attorney and see me in court!”  I remembr her words exactly.  She reminded me of the mother on bewitched.  Anyway I necver heard from her again… I guess her lawyer corrected her for me.  I felt bad… slightly, but learned a great lesson!  Without any personal cost!

-John