Tenants in my mobile home park (Colorado) abandoned their mobile home. After contacting the mortgage company, I learned the former tenants had filed for bankruptcy. With a court date in March, the mortgage co. should get the mobile home back and understand they will then be owing space rent until they decide what to do with the home. I am owed about $900. in space rent by the former tenant. Considering the cost involved and knowing these people probably don't have the money, I am wondering if it is worth it to hire a lawyer to file a proof of claim for me in bankruptcy court.
Anyone have experience with this and what would be involved in getting my back rent?
abandoned their home, bankruptcy
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Re: abandoned their home, bankruptcy
I am not in your state and each states laws are different, My experience has been mostly in Florida. I have taken defaulting tenants to small claims court and won... but have never collected a nickel. Once you win you have to have a way to collect the judgment. In our state that involves going back to the judge and asking for him to lien something that the defaulting tenant owns. If they have stopped paying on the roof over their head there is usually not much left to attach. If you do find that they own a car (for example) it would cost me $500 to get the sheriff to capture and auction off that car. Most of the time there is a first lien holder who gets his money first.... it is doubtful that there is much if anything left after the first lien.
Make a call to a local attorney and see if the game is played different in your state when there is a bankruptcy involved
You can create an opportunity from this situation. Contact the home lender and let them know that you also are owed back lot rent and would like to join their law suite. Ask what their intensions are once the repossession is completed. It is to your advantage in most cases to keep that home in place and find a new tenant (who can pay rent) to purchase it.
You can often buy homes that people sell or abandon in your park, and sell them at a profit. Depending on the situation, you may be able to sell them for cash, on terms, or with new financing. As the park owner, every time you sell a home and fill a vacant lot in your park you have just increased the monthly lot rent income as well as the value of the park. SEE Mobile Home Park vs. Apartments for Investment
Make a call to a local attorney and see if the game is played different in your state when there is a bankruptcy involved
You can create an opportunity from this situation. Contact the home lender and let them know that you also are owed back lot rent and would like to join their law suite. Ask what their intensions are once the repossession is completed. It is to your advantage in most cases to keep that home in place and find a new tenant (who can pay rent) to purchase it.
You can often buy homes that people sell or abandon in your park, and sell them at a profit. Depending on the situation, you may be able to sell them for cash, on terms, or with new financing. As the park owner, every time you sell a home and fill a vacant lot in your park you have just increased the monthly lot rent income as well as the value of the park. SEE Mobile Home Park vs. Apartments for Investment
David Oxhandler
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[email protected]
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Re: abandoned their home, bankruptcy
I have a small MHP in alabama, and have the same experience as Oxhandler. Save yourself the $ you'll spend in ant-acids chasing the bums, and contact the finance company. Buy the home yourself at a discount. I have bought several repo homes fixed them up, and made some serious $. You can deffinately turn your negative into a positive here. By the way if you need any mobile home parts check out my website: www.themobilehomepartsplace.com
Have a great one!
Have a great one!
Lee Clayton
www.themobilehomepartsplace.com
www.themobilehomepartsplace.com
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Re: abandoned their home, bankruptcy
I think the Bankruptcy expert can go all the way and can answer that situation.
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