What happens if someone owns MH free and clear, but doesn't pay lot rent? Can MHP take the home? What is the process?

12 Replies

I'm looking at a MH in Colorado where the owner owns it free and clear. Lot rent was due yesterday, and she didn't pay it and won't be able to pay it going forward. What can the MHP do in that case? Been searching online (obviously without much success) and can't figure out if/how the MHP would get the home. Owner can't even afford lot rent, so she's not going to move it. MHP made her an offer, but she considers the amount an "insult." Thanks for any insight!

The MHP can and will file a lien against the MH. The lien would have to be satisfied before the MH could be sold. It won't take long before the lien is more than the value of the MH. The resident will be required to leave if they don't pay, with or without the MH.

The MHP knows it is in control of this situation. That is why they insulted her with their offer. Her best bet is to sell or settle now and move on.

Greg -- MANY thanks for the response! Do you know if this varies from state to state? I'm in CO. I told the owner I would have to run the numbers, but that my initial take was that I probably wouldn't be able to go any higher than the MHP's offer. Of course, their offer was 30+ days ago, before she missed lot rent, and back when she probably thought she could get asking price for this craptastic fixer. She's a funny one...I wouldn't put it past her to sell it to me below the MHP offer just to spite them (in which case, I might have to reconsider...she's already purchased a bunch of good quality materials for the rehab). Thanks again!

It may vary from state to state due to laws but the tactics remain the same.

In Texas she can't sell without satisfying the lien and all property taxes must be current. I hope it works out to your benefit.

First the Park will probably serve a NOTICE TO QUIT, for MHP this is 5 days.

Then they will file FED Forcable Entry and Detainer. Court will be held between 5 and 10 days from the filing and the owner should be served within 5 days of the hearing. If the home owner is not served personaly and she does not show for court, then she will not be responsible for payment, but the court will rule in favor of the Patk.

The judge in Park County Colorado will order the home to be moved within 48 hrs. Essentially the Park now has control of the home.

Hi Ric --

Thanks for the info! As it turns out, the owner actually found someone to pay $10k for her MH (proof, I guess, that miracles *do* sometimes happen).

Are you actively investing in mobile homes or mobile home parks?




I managed 2 parks in Fairplay for 9 years, until last summer. I have remdodeled about 100 homes and moved in and set 25.

I would not own a trailer inside a Park unless I owned the park. If you own a home worth 10K and the lot rent is $500/mth, your paying 60% per anum to park it there. The numbers don't work for me.

I would like to own a park, but the ones I've looked at only break even after 20% down, and that is with me as the manager. You can hire someone to collect the rent for a 50% discount on their rent, but that opens a whole new can of problems.

On the bright side, MHP's can be Cash Cows, go overboard on your due dilligence. Call the local police to ask about their involvement there, and if possible try to talk to the town council on a one on one basis. If you have a plan to make improvements, put it in writing and show it to them.

Ric Miller

If you are buying a mobile home park in California PM me.

Why's that, Bart? If you have something to add to the conversation, please post it.

It's not me

Scenarios like this are fairly common with MHs and MHPs, at least in my experience. It's a good reason to work on developing relationships with park managers/owners. Even though she found someone to buy her "craptastic fixer" (I'm going to add that to my vocabulary if you don't mind-very funny!), situations like this can be opportunities for investors to be problem-solvers for both parties. I've received some very nice leads (and a lot of not so nice ones) from park owners giving my card to residents who are at risk of getting jammed up. Anyway, sure sounds like you have the right attitude to make a go at doing some mobile home deals. Best of luck in your investing!

I was told not to post ads in this area.

Where I'm from (San Antonio, Tx) the can absolutely take thehome. they can even take it from a 1st lien holder if they don't pay up.

You may be able to negotiate with the park. Tell them if they waive the lot rent you'll leave the home there...if they don't ...you'll move it. Of course this only works if the park has vacancies and does NOT have a waiting list.

--Mitch Stephen--

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.