Owe around $10K on mobile home that I use as a rental property, but am now going to sell it for around $22,500. How does this work? The loan is with a local bank, but I'm wondering what all has to take place for transfer of title to the new owner? Anyone ever deal with this before?

Thanks!

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Posted by iAmBatman

The Batcave

Member since Mar 2011

12382 posts

Posted on 12/8/16 at 2:08 pm to btnetigers

quote:
The loan is with a local bank

I would start with calling that bank, not asking random people on the internet.

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Posted by BadMrK

Addis, La

Member since Dec 2016

141 posts

Posted on 12/8/16 at 3:12 pm to btnetigers

I recently went through this. I found that there wasn't a lot of info available on doing this kind of transaction. We waded our way through it and this is how we did it.

Sale price of 29k. I owed 18k. The buyer and I met at a notary. I brought a copy of the title, and he brought 2 certified checks. One check for the pay off amount (18k) made out to my bank, and one for the residual 11k made out to me. This could have been done with one check made out to me, but this way made the buyer feel more comfortable.

Before we set foot in the notary, I called the bank to verify the legitimacy of the checks. Not that I didn't trust the guy, just covering myself.

After the checks were verified, we had the notary generate a bill of sale with as-is language, as well as language that specified that I was to use the collected funds to settle the loan (so I would be legally bound to not take the money and run). We both read, agreed, and signed it. It was a pretty simple document. The notary then notarized it. At this point the notary explained that the trailer had now legally changed possession, even though the title still resided at my bank. She had me sign a limited power of attorney which gave her permission to sign the title over to the buyer in my stead once she receives it.

Now that we were done at the notary, I went to my bank, paid off the loan, and deposited the second check in my account. With the loan settled, I had the bank kick out the title to the address of the notary. A couple weeks later, the notary received the title and signed it over to the buyer. Done deal

Edit: This is in Louisiana. Not sure if it works differently elsewhere but it probably does.

This post was edited on 12/8/16 at 3:15 pm

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Posted by GFunk

Denham Springs

Member since Feb 2011

14966 posts

Posted on 12/8/16 at 4:22 pm to BadMrK

quote:
BadMrK

quote:
I recently went through this. I found that there wasn't a lot of info available on doing this kind of transaction. We waded our way through it and this is how we did it.

Sale price of 29k. I owed 18k. The buyer and I met at a notary. I brought a copy of the title, and he brought 2 certified checks. One check for the pay off amount (18k) made out to my bank, and one for the residual 11k made out to me. This could have been done with one check made out to me, but this way made the buyer feel more comfortable.

Before we set foot in the notary, I called the bank to verify the legitimacy of the checks. Not that I didn't trust the guy, just covering myself.

After the checks were verified, we had the notary generate a bill of sale with as-is language, as well as language that specified that I was to use the collected funds to settle the loan (so I would be legally bound to not take the money and run). We both read, agreed, and signed it. It was a pretty simple document. The notary then notarized it. At this point the notary explained that the trailer had now legally changed possession, even though the title still resided at my bank. She had me sign a limited power of attorney which gave her permission to sign the title over to the buyer in my stead once she receives it.

Now that we were done at the notary, I went to my bank, paid off the loan, and deposited the second check in my account. With the loan settled, I had the bank kick out the title to the address of the notary. A couple weeks later, the notary received the title and signed it over to the buyer. Done deal

This is as succinct and accurate of an explanation as you will find for how the sale of a titled movable like a mobile home goes down in Louisiana.

quote:
Edit: This is in Louisiana. Not sure if it works differently elsewhere but it probably does.

It does. Mainly because in Louisiana, a Notary Public is trained and thoroughly vetted to be able to handle the much larger duties and responsibilities than elsewhere in the Union.

In 49 other states, a guy/girl walks into the courthouse. They pay a fee. They sign up. They become a Notary.

In Louisiana, you must pass a pre-assessment, spend close to about $500 in registrations and exams scheduled, and pass an incredibly difficult certification exam.

Most of us take a 6 month class prior to the exam along with individual "cram," sessions...

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