Can she do it? Mobile Home Sale in Texas

Question

I'm new to mobile home investing (I've only purchased "traditional" homes in the past) - and I'm hoping someone has some experience to share.

My brother & sister in law manage a mobile home park.  Recently one of the tenants passed away and her mobile home is still in the park.  She had no will, and neither of her children had a Power of Attorney for her (I just found this out tonight).  They DO have the SOL documentation - but neither are listed on it.  Are they able to sell the mobile home?  As it stands now - the mobile home park shows they  owe lot rent, late fees, and some lawn care fees from March until now.  The children are trying to sell it just for what is owed to the MHP.

The MHP will be filing abandonment paperwork soon to seize it.  Of course I was trying to step in before that - but I sure don't want to fork over cash only to find out the transaction isn't legal.

Thanks for any help!

Jonathan Jewell · Answer

@Bill Tyler, Let that one go to the dump then.  Plenty more MH deals.  The fact that you have a brother and Sis-in-law that own a park is huge.  You'll be swimming in deals in no time. Don't be afraid of making mistakes.  Look forward to them, that's how we learn.  Best of luck to you!

Guy Gimenez · Answer

Regardless of the type of property, even personal property which this is, potential heirs of the deceased cannot sell what they do no own. This is now part of the estate and will be dealt with via the laws of intestacy. You can't sell your neighbors car when you have no ownership in same, and the same goes for her children.

Rachel H. · Answer

As far as titling goes, they'll only go off of who is listed on the title meaning the registered "seller" has to sign to the new buyer to make it legal. If the children are trying to sell it, they need to present some sort of Power of Attorney and/or court order to the titling office in order to transfer title. You may want to confirm this with the titling office to make sure. Hope that helps, good luck!

Janene Tompkins · Answer

I am not an attorney, just a CFP(r) who works a lot in estate planning. Please contact an attorney. Power of Atty is only valid while someone is alive. Once the person dies, the will, trust or state laws if intestacy take over. If this  woman's children are are her only heirs, they should open probate with the local clerk of court. There are other steps, but once the court approves someone as executor, the home can be sold as part of the estate. The MHP will need to file as a creditor to receive funds from the settlement of the estate. To sum things up, the family needs to start the estate settlement process before the home can be sold.

Bill Tyler · Answer

Well it's been a while since I've been on Bigger Pockets.  I thought I would update this thread for anyone following.  I passed on the deal after a little more research (and finding out the daughter had no legal rights of ownership).  It was money well saved.  The MHP filed abandoned property paperwork with the State and took ownership.  My brother & sister in law kept the HMP owners in the loop that they had an "as is" buyer once everything was completed with the State.  Long story short - it took a year, but I DID end up buying it (for an amazing cash price!).  I actually have moved into the home due to the CRAZY housing prices in Dallas/Ft. Worth right now - which has cut my housing expense by 50% and given me an extra bedroom.  To sweeten the deal, I also have an 8'x8' Tuff Shed (about $1,300 at Home Depot) that was included in the sale.

It has taken a LOT of cleaning and airing out due to the previous owner being a cat lady and heavy smoker.

My words of wisdom - keep sharing your experience with others in the Bigger Pockets community.  Don't be afraid to pass on a deal - but follow up from time to time.  Know your numbers and make the deal work for you! Now...back to some remodeling. :)

Ronald Rohde · Answer

Some conflicting advice in this thread, I suggest talking to an attorney in the mobile home state.

Guy Gimenez · Answer

Regardless of the type of property, even personal property which this is, potential heirs of the deceased cannot sell what they do no own. This is now part of the estate and will be dealt with via the laws of intestacy. You can't sell your neighbors car when you have no ownership in same, and the same goes for her children.

Jonathan Jewell · Answer

I have purchased just as many mh's from relatives of dead ppl than alive. Lol. I am NOT an attorney and laws differ from state to state, and I may not be doing it quite right to the satisfaction of some attorneys but so far so good no issues. Keep it simple. Are ALL the siblings and or remaining relatives in agreement to sell the home?  Good then type up a paper that states just that, and says we are all in agreement, list them all by name. Have it clearly state that there are no other siblings that could lay claim to the mh and have it notorized. You would be surprised the ppl that come out of the woodwork when there is a death and they think there is money to be had. Also by stating that there are no other siblings or relatives that could lay claim, it further puts the burden on them to tell the truth and you are acting in good faith based on their statement.

Is there a title to the trailer? Good if not then have the park go through wirh judicial seizure then meantime have executor apply for duplicate title.  Give your bro and sis a couple bucks and have them release it to You.  And that brings me to my last point. If you really want to keep your ducks in a row only deal with the executeur of the estate. This is the person that has the power to sign title over to you. GET A COPY OF THE PERSONS ID ALONG WITH EXECUTEUR PAPERWORK AND THE DEATH CERT. You will need all of this when you go to the tag place. After your done with the transaction, keep all of this with your other paperwork and file away. If there is ever a claim or issue that would pop up in the future. It shows that you clearly took the necessary steps to obtain the mobile home through legal means from a person that was authorized to sell. CYA CYA CYA. (Cover your azz)  Hope this helps best of luck to you.

Bill Tyler · Answer

Oh - and IF the sale is legal, the money will go straight to the MHP and not to the children.

Can she do it? Mobile Home Sale in Texas

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