Bought me a trailer park, yeehaw! Can’t get titles.

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Here is a question for the group. I just bought this park with an owner financing component. I put in a 27% down payment and then the rest was owner financed. 38 total lots, 28 Park owned homes.

So we are working away getting utilities switched over to my name and the previous owner said that his attorney told him not to give me the titles to the park owned homes because since he is "the bank" he shouldn't give me title to those park owned homes prior to our payoff date. ???

Admittedly, I am new to this and am learning on the run but I would have thought I would get title to those homes. How can I possibly sell off park owned homes if I don’t have a clear title to them?

I would love your input, maybe someone else can learn from my pitfall, haha.

Hey @Mackenzie Craik - you're in a pickle! Same pickle I'm in with our park, but we have our titles locked up with our bank.  When we were negotiating with the bank, we were very upfront about wanting to sell off the homes and setting release prices for each home. They blew it off like it wouldn't be a big deal, but it's kinda turned into one. Not because they're unwilling to release them, but they're just slow to work with while we're trying to divest the houses as quickly as possible. 

Assuming you were upfront with the seller about wanting to sell the houses, try to write an amendment into your deal to set release prices on each home. All you'll have to do then is find the buyer, collect the money, and pay off the home's release price (hopefully with a little extra!) to free up the title. Make sure the seller has them all if he's going to hold them as collateral - chasing down titles can be an impossible task sometimes.

Also make sure the titles transfer automatically if you pay off the park and that the balance on the park loan drops by the release price on the home when paid. It's better when they're written separately, but a good title lawyer should be able to write up the amendment to protect you and the seller if it needs to stay as one agreement.

Good luck!