Question on Note

Our preferred deal is with lease and options. However, one park (55+) insisted that we have a note, which we did.

The woman who bought this unit is now defaulting. She has not paid us for two payments and has stated that she does not intend to make any more. The park has started eviction proceedings. They told me they normally put a lien on the home after eviction. Of course, we already have a lien. They also want her out of their park because of other issues. She told someone she would stay in the home until the court threw her out, so getting her to sign over the title to us is NOT an option.

After contacting several attorneys, we finally were referred to one that actually handles this type of thing. He told me it was not cost effective for us to pursue this, since it starts at a retainer of $2,500. The note has a current balance of $4,600.

How do we proceed? I have already talked with the PM and told him we want to work with them. I am sure they do not want this home, so it would not be productive for them to buy our interest. (I assume it works the same as a 1st and 2nd mortgage on a home.) We don’t really want to just walk away, especially since this is owned in our IRA Trust.

Does anyone know where we stand in all this? Suggestions are welcomed. Tye has suggested that I take brownies and have a sit-down with the woman, which would have been a good idea if the PM had not now told me they prefer to not have her as a tenant any longer! The corporate offices for this park are in Chicago, so this is a big company.

She does not care if she gets evicted by the park because she is also filing bankruptcy.

Ellen Brenn

HI Ellen,

I, as you usually use the Lease/Option on mobiles, have used a promisorry note on rare ocasions , but never give my tennant/buyer the title ,only went through the court system once with a note and was nervous as to how it would turn out, but here in Ga. small claims court handles cases up to $15000 , so these Lonnie Deals I do r usually less. Anyway it went just like any other eviction , The Tennant Had To Go!!!

Bankruptcy and a note could pose a different problem

Dont know the process in FL. ( i know its a lot different from here, in Georgia) but look like some one at the magistrat court could point you in the right direction.

Good Luck,

Ricky Roland

Ellen this is one situation where negotiation is going to be the solution. Forget what venting or bragging she may have done to other park residents. Keep in mind that most Lonnie buyers are not upset with you but rather find (or manufacture) some reason to be upset with the park as a justification for not paying the lot rent. It allows them to save face with the other park tenants.

Meet with the buyer and listen to them. Find a means to “understand” that they are under a lot of stress or that they are upset with the park (just empathize here). Explain that you don’t want to make things worse and that you will not seek to take her to court but that you must get the home back to resell (she will realize this). Have her sign a voluntary repossession form.

Be flexible from there. Maybe you have to play the good seller by allowing them to stay until the court date with the park. Maybe you slip in that if she would move earlier so that you can put it back on the market (saving you money) you might be able to give her back the down payment she put down (or some other amount of money).

This way you appear to be on her side. She knows she is going to lose the home and be evicted. She does not expect that you would actually give her money “to help get her back on her feet.”

Be nice and you may well come out fine on this.



I agree with Tony that you have a chance to be the good guy here with the big bad park…

Look Mr. & Mrs. Buyer, the park is being pain to work with on this and is wanting to slap a lien on the home so we are both in a pickle here. If it’s OK with you I’d like to try to help you get set up in a new place quickly so that you can move on and when we get the home back the park doesn’t end up getting it for free. (should pull on their screw the park thing they’ve got going) Hit them with a buy out option and give them the choice to walk away and still save face by taking something away from the park.

A word of warning, if they are truly in BK you cannot talk to them and must deal with the attorneys even if they simply have them on retainer and have not filed as of yet. I had several people with this same attitude put multiple attorneys on retainer without ever filling. Take action now and try to mitigate the lowest loss even if it cost you a grand or two to get them out sooner rather than later.

Best wishes,

Ryan Needler

How would anyone know if they had an attorney? If they are actually filing bankruptcy, don’t all creditors get notified? (Both us and the park)

We have someone in bankruptcy in our own park, and we did not know it until after we actually filed eviction papers. We then received the bankruptcy paperwork and both Greentree and the park were named as “special creditors” with the bankruptcy referee paying us all back rent over the next year and Greentree getting paid as well. The woman has to pay current rent directly to us (and is). We have not received anything from a court on this Florida one.

Anyway, we will definitely be using this technique. Maybe we will even do it with the brownies that Tye suggested! We don’t mind paying out some money - we will more than get it back when we resell this unit.

I understand you wrote a Note on sale…did you surrender titles and name you as lienholder?

If so, it is a very simple matter to get a Certificate of Repossession from the Court and get em booted. Greentree, Vandy , et al do it every day. cost? here 4-600 bucks with an attorney.

did you pay tax on the entire sale when sold? If so you have a nice credit on next year’s returns. Tony and Ryan both gave you very, very good advise…it always is my way to not confront, but instruct. I have been called a sissy for paying dead beats to leave, but even a great lawsuit is usually a loser ($$$ wise). If you catch up rent can the home stay? The odds are this lady won’t come up with the bucks to file BK…more talk…you will be notified as lienholder if she does file… nothing like a little stress this time of year, eh?