Seller Can't Find Title

[Dan]

We are trying to purchase property with a manufactured home on it in Arizona.
After agreeing to pay the full asking price for the property which we feel is a good deal, they sent a disclosure statement saying that they have been unable to obtain a title for the manufactured home. It is being offered by Homestep, which we are told is a government agency that has repossessed it from the former owners. I don't understand how they ever obtained financing on it in the first place if there is no title.

The addendum that they sent says "the purchaser agrees and acknowledges that Seller has been unable to obtain title to the Home, and that evidence of title and title insurance, including an ALTA 7 Endorsement, may not be available no issued on the Home. Norwithstanding the foregoing, Purchaser is still desirous of purchasing the Property." By the way, we were told that we wouldn't be able to obtain title insurance on the home. There is more contained in the addendum, the bottom line being that we would have to accept all liability that could arise from the lack of title.

On one hand, it sounds really bad. On the other, I'm thinking that if the government was willing to loan money to those people under the circumstances, maybe it wasn't a big deal. It's a 25 year old home that would have little value on it's own. Additionally, it would be impossible to remove it from the lot now that a garage has been built and there are large pine trees in front of it.

Can anyone provide some insight?

[David Oxhandler]

FIRST : - Homestep is NOT a government program. From their web site (www.homestepprogram.org/) They appear to be promoting a program operated by Spokane HomeOwnership Resource Center (SHORC), " a non-profit, 501(c)3 charitable organization."

I have no idea who these people are. BUT just because they are a registered charitable organization is not necessarily a good reason to drop your total trust in them.

I have read about programs that work ONLY through participating dealers and agents who pay, or donate, (often called kickback) the down payment and an additional fee back to the "charitable organization" in exchange for help to overcome the buyers lack down money needed to get financed.

SECOND: - It is never imposable to move a manufactured home. What ever went up around and attached to it can also come down. It is a question of affordability. If the seller wont remove the home and sell you the land separately you would do better to find another parcel of land to love. This one could break your heart and your pocketbook and kill your future. You will be taking liability for what ever happened that has brought this home to resale without "MARKETABLE TITLE".

THIRD: - If you buy with out a title to the home or title insurance on the land you are just buying the sellers interest in the property. You will NOT be taking full legal ownership

Who knows... there could be a good reason why the last TITLED OWNER did not sign title over to the current sellers. You may very well spend the rest of your life defending the sellers interest and could possibly loose after making many payments..

I am one of the worlds greatest cheerleaders for manufactured housing sales... but my gut feeling says run from this one as fast and far as you can.

[Bill Fry]

On the other hand if its just a old mobile home that is just taking up space its very likely the previous owner had bought the land and then MH was not included in the price.Thres lots of old MHs sitting on lots that have no titles. Is this home livable or do you just want it removed?

[David Oxhandler]

Consider this... If you do not have clear title can you dispose of the home? Can you sell or even junk any thing you dont have legal title to ?

[Janie]

In AZ there is what is called an Affidavit of Afixture which makes a mobile and land taxed together, makes it more valuable as well. When you get this affadavit you surrender the title. Look at the county's Recorder site if it's online and see is there is a Affadavit of Afixture. I had to get my AOA unafixed so I could get rid of the mobile and keep the land what a pain. This is in Pinal Co. With your mention of pine trees you're probably in Cocinino, Gila or Yavapai County. Almost all mobiles around here with land have the AOA.

[Dan]

Thank you for the posts you have all sent. Very scary. I was told that Homesteps was a government agency, it does say A Freddie Mac unit below the name, but I guess that must not mean anything.

I was told that we could get title insurance on the land. The garage is site built. It is true that if someone came and cut down trees they could conceivably get to the home. Could they do that without our permission?

Yes, we did intend to live in the home during the summer months. It is 25 years old and needs renovation, but we figured we could work with it. If the home was not a part of the deal, we certainly wouldn't want to go through with the deal.

After reading the posts, I feel that we have been mislead by the listing agents. They didn't mention the title problem on their listing and also represented Homesteps as being a government agency.

We can back out of the deal, it would just break our hearts as this would be perfect for us. We intended to pay cash for it so we would have a lot of money invested.

I went to DMV today to try and have them look up the title information. The number I had was incorrect. Our agent went to the property and found two numbers on the home. I intend to go back to DMV tomorrow and have them try to look it up again.

I still can't understand how these other people got financing on this property without a title on the manufactured home. I just don't understand how it can't have one. Oh well, I have never been involved with manufactured homes before, so I know nothing about how they are titled. I understand that if they are "permanently affixed" then they are included in a deed on the property. This one is one piers so it isn't considered permanently attached.

We were ready to move forward despite this problem, but it is sounding like a bad idea.

Thank you for taking the time to help us.

[Janie]

I understand that if they are "permanently affixed" then they are included in a deed on the property. This one is one piers so it isn't considered permanently attached.


doesn't matter, I have seen plenty on piers that have the AOF. As long as you own the mobile and land.