Leased Lots

[Michael Fasig]

Are there any clauses in a typical lot lease agreement that prohibits the sale of the property to developers or do you just take your chances. To buy the lot appears to be quite expensive and going up in value each year.

I have been reading about developers who are buying up mobile home parks to build luxury condos. And from what I've learned the leasee has little if no rights to remain. The developer gives 90 days for you to get out or your home is bulldozed. The compensation required by Flordia law is minimal and certainly does not cover the cost of a move. Not to mention that most mobile homes can't be realistically moved anyway.

[B. B. Rich]

Hi Michael,
Funny you should mention that scenario. We live in Texas and that is EXACTLY what happened to us just this past fall. Though in fairness, the bastard (developer) had been playing pattie cake with the mayor and city counsel for years to do it. He now owns more than half of the city.
As stated in another forum here, watch out for Eminent Domain which these days means if the city thinks they can make money on it, you are SOL. Also look for city borders that suddenly expand to include the park you are in. Another nasty trick.
The developer I mentioned actually GAVE the city just enough land outside the park where we were to have it include in city ordinances. All this was going on and no one knew what was happening for five years! Then one day we all get a notice in the mail that the park was about to be sold. By then it was too late to do anything about it. Money and political clout had taken it's toll.
We had moved out nearly a year before bought our own land and put up another MH home on it, and were renting the home by then but couldn't afford to move it. So it was lost to the bank, and my credit took the hit. We are still waiting for the other shoe to drop. (What's next?)
Leasing land is a bad idea anyway. If you can buy land and put your home on it. On leased land, your "home" is viewed as nothing more than personal property , the same as your car or computer. Buy land and it can usually be converted to Real Estate and you qualify for a traditional (30 year) FHA or VA mortgage. The value may actually increase. If you are like me, you will be upside down on your Chattel Mortgage, something I personally feel should be outlawed, for years and years to come.
Good Luck to you and remember, it's tough out there.

[Michael Fasig]

Thank you very much for your input. I continue to get immensly worried about leased lots. And you are a good example. I'm going to start looking for owned lots. If I can finance the land the payment would probably be comparable to the lot rent.

[Brian Guidry]

I totally agree with B.B. Buy your own property if at all possible. If you're partial to country living, check to see if there is any land for sale outside of the city limits. We live in a MH subdivision and here everyone owns their own 1/2 acre lot. It's very quiet here yet we're only 5 minutes from town.

Good luck to you! Keep us posted on what happening.