You’ve inherited a mobile home?
It’s Brad from ProbateResource.com.
Probate Resource is a real estate solutions company based in metro Atlanta. We specialize in probate and inheritance properties, and we buy houses In Georgia and in other states too. We have extensive experience in dealing with mobile homes or manufactured homes. In this video, we will discuss what you should do if you have inherited a mobile home.
Is it in a Park or on Land You Own?
First, if you have inherited a mobile home, you need to determine whether it’s located on a piece of land or in a park. If it’s in a park, you’re likely paying a lot rent to the park owner. You should ask yourself if you want to keep paying the lot rent or move the mobile home somewhere else. However, moving a mobile home can be quite expensive, costing anywhere from 8 to 10 thousand dollars, and you’ll also need to find a new location for it. Ultimately, this is a decision that only you can make. Remember that moving your mobile home could cost up to 15,000 dollars or more, depending on the distance you’re moving it and other complications.
Is it worth it to move?
A lot of times it’s not worth it to move, especially if it’s situated in a park, not attached to land, and if it’s an older mobile home. The cost of moving can be prohibitive, making it more practical to sell the mobile home instead. However, it’s important to carefully review the lease agreement that you signed with the mobile home park. If you inherit a mobile home, you may not be authorized to rent it out. It’s important to note that you own a mobile home, but some parks do not allow mobile homeowners to rent out their property. It must be occupied by the owner. This means that the park has the exclusive right to rent out the mobile home, or you may need to obtain their approval to do so.
Why do the parks not allow that? Basically, they force you into a corner where you have limited options. You may not have the funds to move your mobile home, nor are you permitted to rent it out to someone else. You may not want to move into it either, as you already have a home of your own. This leaves you with no choice but to sell the mobile home to the park, which will buy it from you and turn it into a park-owned home.
If you have only one potential buyer for your mobile home, they may not offer you as much money as if you had more options. This is because if you can’t find someone to rent the home, it’s not useful to you. Rules in the park usually allow only owners or their family members to live in the home. If you want to sell a mobile home in a park, you may be able to owner finance (aka seller finance) it to someone else, which means that the new owner will be on title to the property and make payments to you. However, checking the park rules first is important since this may not be allowed in all cases. It’s worth noting that this area is a bit gray, and I won’t be getting into further details about it in this video.
Selling a mobile home on land
Let’s move on to another topic. Is the mobile home located on a piece of land? I have a great interest in mobile manufactured homes on land. In fact, I own a few of them and I’m planning to purchase another one this week. I find them appealing because they offer affordable housing solutions. As of now, the real estate market prices are skyrocketing, and mobile homes on land provide a cost-effective housing option for individuals. If you can make the mobile or manufactured home eligible for a mortgage, such as FHA or VA loans, the property will have a higher value on the market. This way, someone could buy it from you on a mortgage. However, it may be a bit more challenging to make these homes eligible compared to a standard house made of bricks and mortar.
If you have inherited a mobile home that is located on land, the first thing you need to check is whether the title to the mobile home has been retired or not. In most cases, people do not retire the title, which may cause complications when you try to sell the property. If the title is not retired, the mobile home and the land will be treated as separate entities. The mobile home will be considered personal property, while the land will be considered real property. Until you retire the title and attach the mobile home to the land, it will remain personal property. Just like a car, there will be a title or a tag for the home, and a separate title or deed for the land, which are not always the same.
If you have inherited a property, it is recommended that you verify the property’s tax status. You can contact your local County Tag Office and provide them with the property’s address for verification. However, if you have filed for homestead exemption, you may receive only one tax bill instead of two separate ones. To check if there are two different tax bills for the mobile home and the land, you can search the property address on the local county tax assessor’s website. If you find two separate tax bills, it is likely that the title for the property is not retired. In this case, it is advisable to retire the title.
If you plan to sell a property, it’s important to know that the title review process will reveal any unresolved title issues. To resolve any title issues, you can ask an attorney to retire the title for you at closing, or you can do it before. Here In Georgia, where I live, the process of retiring titles can take up to 6-8 weeks. However, if the end buyer has a lender, they may allow a grace period of 90 days to retire the titles post-closing. It’s important to check if the titles have been retired, and if not, you will need to go through the process of retiring them by surrendering the titles.
Problem with titles
If it seems that there is an issue regarding the location of the titles, this is a common problem and you will have to determine certain facts. First, you need to find out if the title to the mobile home is even in the name of the deceased person. As we are discussing probate inheritance here, it is important to check whether the title was ever in their name at all. Sometimes, the land has been transferred but the mobile home title was never transferred or it is still in the name of someone from two transactions ago. In such cases, you will have to undo the whole process. Therefore, you need to investigate and ensure that you check whose name is on the title.
If you have the titles to the mobile home, that’s great news. It’s a rare circumstance as most of the time, families don’t have copies of these titles in their paperwork. If you do have a copy of the title, sign the back of it like you would do if you were selling a car. After that, provide the title along with a bill of sale. If you’re in Georgia, you can easily download a bill of sale document online. Many states offer the same forms online. If you’re dealing with a double-wide mobile home, you’ll have two separate titles, one for Side A and one for Side B. They bring them in two separate units and join them together.
Occasionally, a single title may have two different VINs (Vehicle Identification Number), one on side A and the other on side B. However, more often than not, there are two separate titles, both of which you will need to transfer to the new owner. When you’re ready to retire the titles, the process involves submitting a form to the state. In Georgia, the required form is the T-234 (Mobile-Manufactured Home Certificate of Permanent Location). Other states may have a similar document named something else, but the premise is the same. You will need to provide some information about yourself and the property, as well as indicate that you wish to retire the titles. If you are the representative of an estate, you can sign on behalf of the estate once you have the necessary probate letters. By submitting the form, you are essentially surrendering the titles to the state and certifying that the manufactured home is now permanently located on the property.
Vehicle Identification Number
After submitting the form, the local county authorities will send either a sheriff or a marshal to inspect your property. Their sole purpose is to verify the VIN of the unit. Typically, the VINs are located on a placard inside the kitchen cabinet or the back of a laundry room cabinet door. In some cases, they can also be found on the unit’s frame. If you have a single-wide unit, there will be one VIN, and for double-wide units, there will be two VINs. The authorities will verify that the VINs on the titles match the VINs on the property. They will also check whether the unit is movable or not. To make sure it is not movable, the axles and the tongue used to attach the hitch need to be removed.
If you previously owned a traditional house, you would have owned the land it was built on, as well as the house itself. Similarly, if you own a mobile or manufactured home, the improvement on the land would be the home itself. This means that you will receive one tax bill for both the land and the attached home. If you have recently inherited a mobile home, there are specific steps you should take to ensure that everything is properly transferred and regulated.
Selling the mobile home
Suppose you plan to sell your property. What is its worth? If the property is financeable, it holds more value since you can obtain a mortgage and someone could buy it from you. However, if it’s not financeable, for example, if the titles aren’t retired, or it’s not on a permanent foundation, then it’s considered personal property. In such cases, it’s also a depreciating asset, just like a car.
It’s important to take care of mobile homes, especially older ones as they can deteriorate quickly. However, some newer homes built within the last decade or so are built better. In some cases, if a mobile home is in poor condition, it’s best to demolish it and bring in a new one. This decision is made after evaluating the condition of the home.
Zoning regulations
As I record this video, I would like to highlight that Governor Kemp of Georgia has recently passed a bill that prohibits local municipalities from creating zoning regulations that can hinder someone from putting up a mobile home on a piece of property. This law also applies to any other kind of property, not just mobile homes. The previous zoning rules made it difficult to put up another mobile home on a property where one already existed, in some cases. However, some local municipalities have made creative rules to NOT allow it, while others have grandfathered it in. This means that if a mobile home was already there and it was taken down, the same mobile home can be put back up in its place.
For example, if there is a two-bedroom single wide on your property, you can replace it with a new two-bedroom single wide but you cannot put anything bigger. Recently, Governor Kemp signed a law that outlaws municipalities from restricting the size of manufactured homes. This is a step towards creating more affordable housing as we have a shortage of it in the country.
Let’s Connect
I understand that the video I shared was overwhelming. However, I hope it was informative. If you have any questions, please feel free to ask. Also, if you are looking to sell your property, we would be happy to discuss buying it from you. Fill out the form and we’ll reach out ASAP!