Titles & Back Taxes on Mobile Homes in Georgia
We purchased a 56-lot MHP in Georgia on March 1, 2013. It was bank-owned for 3 years and suffered from neglect. We're trying to get it turned around and have done 11 evictions so far (of 39 occupied lots).
The problem we're facing is that the residents don't legally own their homes, so when they're evicted, they just leave them. Most bought them 3 years ago and didn't want to pay the back taxes, so they never transferred them to their names. The tax office has done nothing about it, since they felt nobody would bid on them at a tax sale (they're older and in poor condition). As a result, taxes haven't been paid on many in 7 years and they're in excess of $1000. Many of the homes aren't worth that. The tax office won't budge on the amount. The city condemned/demolished a number of homes just before we bought it and there are others that are 'borderline' to being condemned at taxpayer's expense.
The second problem we're facing is trying to identify the legal owner of the homes. We obtained copies of the titles to most of them, but they're in a business name and nobody (Secretary of State, Clerk of Court, Tax Office, or DMV) seems to know who is legally responsible for the business. Two different individuals claim it's them.
Many of the residents have titles signed by one of the individuals who claim ownership (and we believe he's the rightful owner). They paid for the home and own it (have signed title), but since they never titled it in their name (to avoid taxes), they're not recognized as the legal owner. I wouldn't think it would do us any good to obtain a judgment against that person because I don't think we can place a lien against the home if it's not in their name.
We've consulted with two attorneys on the matter, neither of which could give us clear direction. Both said it was not worth pursuing abandoned titles. One suggested a Title Bond company, but when I called a company and explained the situation, they wouldn't get involved.
As we do evictions, the homes sit vacant. We've tried to have them hauled off, but we can't even do that without a title. Our other option is to try to get the city to condemn/demolish them, but we'd like to try to salvage those that can be rehabbed.
Cumulatively, there's more than $20,000 in back taxes owed. We feel like the County should have addressed the issue 7 years ago, before the taxes and penalties exceeded the value of the homes. And because they didn't, we feel like they should reduce the amount in order to get them back on the tax roles, but they refuse. The person who says he owns the business that owns the homes is willing to obtain duplicate titles, but the tax office won't issue duplicates until all $20k in back taxes are paid. We feel like their negligence contributed to the situation and they're going to get nothing otherwise (if the city condemns/demolishes the homes), but they insist on the full amount. I feel like we're being held hostage by the tax office because if nobody will pay more in taxes than the home is worth, they will continue to sit on our property without generating any lot rent and while devaluing the park.
It also seems like some government agency would be responsible for maintaining a record of an individual responsible for a business name, particularly when a vehicle is titled in the business name, but thus far, we've been unsuccessful in obtaining such info.
Can anyone offer any insight on how we may resolve the title and tax info? State is GA.
Many thanks.