Updated almost 16 years ago on . Most recent reply
Lease Option Mobile Homes in Michigan?
I am a mobile dealer in Michigan and have done plenty of "Lonnie Deals." The problem here with used mobiles is that the buyer has to pay 6% sales tax on top of the price of the used home right away. We as the dealer pay it on the behalf of the buyer. If they default or trade out early this tax money is a big wate in my opinion and get this, must get paid again and again every time the home sells even if nobody actually never owns the home. This has led me to look into doing lease options or contracts for title. Now I am hearing that if you do these here the sate wants to collect a monthly "use tax" from the note holder. This sounds even worse than just paying it one time up front. I would like to know if anyone id doing these in Mi and if so what the pro's and cons are? I appreciate your comments in advance. I am trying to look at this with an open mind and research all of the angles as they relate to the subject in Michigan.