Topics:
- Selling A Mobile Home With Land
- Selling A Mobile Home In A Park
- Relocating A Mobile Home
- Mobile Home With Inspection Issues
- Modifications & Additions To A Mobile Home
- How To Have An HUD Approval For A Mobile Home
- Mobile Homes With Title Issues
- Retired Titles & Liens On A Mobile Home
- How do you know if there are liens on your mobile home?
- What To Do If You Loose The Original Title Of Your Mobile Home
- What Is An HUD Tag?
What you need to know about selling a MOBILE HOME or manufactured home in Georgia
Hey everyone, it’s Brad from Arbor View Properties. We are a real estate solutions company based in metro Atlanta, and we specialize in buying mobile and manufactured homes throughout Georgia. I’ve been in this industry for a number of years and have gained valuable experience in the sales process of these types of homes. In addition to being a licensed real estate agent in Georgia, I have been purchasing properties for cash for quite some time.
In this video, I won’t dive too deep into the details, as I believe it’s best to cover specific topics in separate videos.
Today, I want to discuss selling a mobile home or manufactured home in Georgia and what you need to know.
Is It On Land?
First off, you need to determine whether the property is located on land or in a mobile home park, as this will make a significant difference. If it’s on land, it’s important to establish who owns the land. Do you own the land, or does someone else? Additionally, are there any title issues concerning the land? For example, if the land was inherited from a family member, there may be a need to resolve any title transfer issues before selling. It’s also crucial to consider if there are any easements or if the land is landlocked. Details about the lot, such as whether it’s in a floodplain, are also important to understand. Having a survey of the land would be very beneficial. If you don’t have one, you can request a new survey or search your county records for a previous one. This will help you understand any encumbrances, easements, property lines, and other important details.
Is It In A Park?
When selling a manufactured or mobile home in a mobile home park, it’s important to understand the rules and regulations of the park. You need to be aware of the lot rent and what it includes, such as amenities and utilities. The buyer will have to abide by the park rules and pay lot rent, so it’s crucial to provide this information to the potential buyer.
Please keep in mind that if the property is located in a park, it’s very unlikely that buyers will be able to secure financing for the home. This means they would need to pay cash for the unit, or you might have to offer seller financing in order to make the sale. It’s important to note that many people buying homes in a mobile home park may not have a lot of money and may struggle to afford cash purchases. This could make it quite challenging to sell a mobile home located in a park.
Sometimes, the rules of the park may prevent me as an investor from buying your home. Some parks have regulations that require the buyer to live in the park, so investors cannot own homes there and rent them out. Just something to keep in mind.
1976 and Beyond: Financing and Relocating Mobile Homes
When considering the age of a home, it’s important to note that if it was built before 1976, you may encounter difficulties securing financing from HUD, VA, or USDA. Many government entities won’t insure a mortgage on homes built before 1976, and most conventional lenders also have similar restrictions. This is because homes built before 1976 may not meet modern manufacturing standards and could pose safety and structural risks.
Some older homes may not be allowed to be relocated at all, depending on local rules and regulations. It’s essential to check with your local county or municipality to understand the rules regarding the relocation of manufactured homes.
Please keep in mind that in most cases, when a manufactured home is moved from its original location to a new one, it may no longer be eligible for financing through HUD (which includes FHA), VA, or USDA if it has been moved more than once. This means that financing for resales may still be an option if the home has only been moved once, but if it has been relocated again, you may need a cash buyer or consider seller financing for the sale. It’s important to consider this when planning to move a manufactured home.
Inspection Issues
When it comes to the age of manufactured homes, there are inspection issues due to poor components. For example, many manufactured homes built more than 10 years ago used different electrical systems and components specific to mobile homes. These older electrical systems are known to have poor connections and are prone to fire hazards. However, in the last 10 years, many manufactured home manufacturers have started using normal components typically found in traditional stick-built houses, such as regular electrical panels, receptacles, and wiring. This change has made newer manufactured homes safer in terms of electrical systems, as they now incorporate standard residential construction components.
The flooring components, windows, doors, bathtubs, faucets, and plumbing in older units are typically specific to mobile homes, which means they can be more expensive. These items are often only available from limited suppliers and are known for having defects and not lasting as long as materials used in traditional stick-built homes. Keep this in mind when considering maintenance and repair costs.
In older units, the particle board subfloor is particularly problematic. When it gets wet, it starts to sag and can completely fall apart. In cases of water damage, it may be necessary to remove an entire bathroom and replace the subfloor, which can be quite expensive. This can lead to inspection issues when selling the property.
We have encountered numerous mobile homes in extremely rural areas where there are no building departments or inspections, which has resulted in questionable plumbing and electrical systems being installed. I’ve had to repair improperly done plumbing and, at times, had to redo the entire plumbing system due to insufficient drainage and ventilation. This is something to consider when selling the property.
Modifications & Additions
It’s important to consider any modifications to your mobile home. Have you made any additions, like a deck, porch, or garage? If so, make sure they were done properly. For example, decks must be freestanding and not attached to the manufactured home. Improper modifications can detract from the home’s value and may need to be redone by a potential buyer. So, ensure that any modifications were done correctly to avoid issues down the line.
Keep in mind that if the mobile home has been moved from its original location, it may be challenging to secure financing. Also, consider whether it’s a single wide, double wide, or triple wide. Moving a double or triple wide home will require it to be taken apart, which increases the cost of moving and shipping since you’re moving two units instead of one. Additionally, it’s typically easier for buyers to obtain financing for double wides and triple wides compared to single wides. Financing options for single wides are more limited, so this is an important factor to consider.
HUD Approval
It’s important to note that a manufactured home can be on a HUD approved foundation even if it doesn’t have a concrete block skirting around it. The approved foundations can include HUD approved concrete block piers, poured block piers, and in some cases, steel piers, as long as they are installed according to an engineer’s specifications. HUD has specific requirements for how mobile homes should be set on a foundation, including the use of structural piers and tie downs to ensure both longitudinal and lateral stability. The adequacy of tie downs is dependent on the wind zone and wind loads in the area.
When a mobile home is being certified, part of the process involves checking for HUD labels. Any mobile home built after 1976 will have a HUD label, which is typically a metal placard. These labels are usually found on the frame and inside the unit, often inside the kitchen cabinets, near the air conditioning, or in the laundry room. However, they may have been removed due to cabinet replacements, falling off, or being thrown away. The HUD labels serve as a notification that the home has been manufactured according to HUD specifications. If the labels are missing, a HUD verification letter will be required, especially if a buyer is seeking financing and an engineer inspection on the foundation is necessary. This inspection can cost anywhere from $300 to $500. I will cover more about this in a separate video.
Title Issues
Let’s talk about title issues, specifically regarding manufactured homes in Georgia. One common problem is that titles were not retired properly, especially for homes located on private land. Prior to 2004, Georgia did not have a formal title retirement process, so many titles from that period were not handled correctly. After 2004, a process was established for retiring mobile home titles. For double-wide homes, there are two titles, one for each side (side A and side B), similar to a car. Replacement titles can be obtained from the tag office, just like for a car. Since 2004, there’s been a process to retire titles through a certificate of permanent location, known as the T234 form, which can be downloaded from the Georgia Department of Revenue website. I’ll cover this topic more extensively in another video.
When you retire the titles of a mobile home in Georgia, you are essentially telling the state and your local tax authorities that the home is now permanently affixed to the land. This means that the wheels and tongue must be removed, and the home must be placed on a permanent foundation. By surrendering the titles back to the state, you are declaring that the home is a permanent fixture on the land, similar to a traditional sticks and bricks house. Once this is done, the home is considered an improvement on the land, and you will receive a single tax bill for the land and any improvements on it. This is similar to the way other additions, such as a barn or a driveway, are taxed as improvements to the land.
Please ensure that you retire the titles properly. If you don’t, you may end up with two separate tax bills: one for the mobile home and one for the land. It’s important to note that receiving only one tax bill doesn’t necessarily mean that your title has been retired properly. Oftentimes, people mistakenly believe that their title has been retired because they’ve only received one tax bill. This misunderstanding occurs because in many counties, if you file for a homestead exemption, you’ll only receive one tax bill, even if your titles aren’t technically retired.
So what does it mean when we have to buy the unit? It means we have to go back and find the original title holder who put the unit on the land and is hopefully still alive. If they’re no longer around, we’ll need to get in touch with their estate. We’ll have to get new titles done and transfer them into your name or ours, and then retire the old titles. This process takes time and money, and it’s a real hassle. I’ve had to do it countless times now, and it’s neither fun nor easy. So just keep that in mind.
Retired Titles & Liens
It’s important to ensure that your titles are properly retired. You can verify this by searching the county deed records to locate where the T234 form has been recorded with the clerk of courts. Additionally, you can contact your local county tax commissioner’s office to search the VINs in the Georgia state database to confirm if the titles have been retired.
Another common issue is the presence of outstanding liens on mobile home titles, especially if the titles weren’t handled correctly, particularly for units purchased before 2004. For example, if you bought the unit in 1999, obtained a mortgage on it, and paid off the mortgage, there may still be an unpaid lien on the mobile home titles.
It’s not uncommon for the original bank to neglect to retire the titles properly or fail to release the lien from the mobile home titles when the loan was paid off. This also applies to any other creditors. It’s crucial to properly retire the titles to avoid multiple liens on the same property. For instance, in the case of a double wide, there could potentially be three titles that can be liened.
In this situation, it’s important to locate the original lien holder and obtain a release of the lien. In Georgia, there’s no statute of limitations on loans for personal property. This means that even if the mortgage on real estate (like land) was paid off a long time ago, if the bank never released the lien, the creditor can still collect the debt. However, there is a statute of limitations for real property, so if a certain amount of time has passed and the lien was never released, the creditor can’t collect the debt. This is an important consideration from a title insurance perspective, as the insurance company will assess the evidence of the debt being paid off and the release of the lien. If the lien holder is out of business or the loan was sold, the insurance company may overlook the outstanding lien.
We need to remember that in the state of Georgia, there is no statute of limitations for personal property, such as a mobile home, until the titles have been retired. Once the titles are retired, the property becomes part of real property. This means that there is no time limit for someone to lay claim to a lien even 30 years later. It is important to retire these liens to avoid any potential issues. I will create another video explaining the forms that need to be filled out and the process for retiring these liens. It’s crucial to ensure that these liens are retired to avoid any future complications.
How do you know if there are liens?
You can contact your local county tag office and inquire whether there are any outstanding liens on the title of the mobile home. While they may not provide information about the lien holder, they can confirm the presence of any outstanding liens. In some cases, involving an attorney may be necessary to determine the lien holder. Our attorneys can reach out to them and identify the lien holder, allowing us to proceed with securing the release of the lien.
If the loan was personal and the lender is deceased, the process becomes more complicated. In such cases, a title bond may be required, which can be expensive, typically around $800 for a double-wide mobile home. Keep in mind that this cost will be necessary to transfer the title as the state of Georgia requires evidence of a title bond to issue replacement titles. You will need to provide documentation to demonstrate that the loan has been paid off, even if the lender is deceased. Therefore, it’s important to be aware of this expense and the required paperwork.
When dealing with land title issues, it’s important to consider that previous generations or owners may not have properly transferred the title during the sale. If the title transfer was not done through a proper title company or closing attorney, or if it wasn’t done using the appropriate legal instrument, it may need to be rectified.
Losing Original Titles
If you’ve lost the original titles, you can obtain replacement titles as long as there are no outstanding liens on them. You can request replacement titles at your local county tag office. To do so, you’ll need to know the VIN numbers for the units. Normally, it takes about seven to 10 days to receive the replacement titles by mail after requesting them from the county tag office. However, as of 2024, the US Postal Service is experiencing significant delays in Georgia due to issues in distribution facilities. Therefore, it might take 2 to 4 weeks to receive the new titles by mail.
If you need to get replacement titles today, you can go to the Welcome All Road by the airport, down to College Park East Point, and off of Welcome All Road there is a state of Georgia tag office where most of the dealerships in the state of Georgia go. You can request same day replacement titles at the Welcome All Road tag office. You will need to fill out an application and provide the proper paperwork. Sometimes, even with the proper paperwork, the process can be challenging. Despite this, if you arrive prepared, you can walk out the same day with replacement titles in your hand. Pay attention to the details if you need to do this.
HUD Tags
Make sure to look for the HUD tag, which is typically red. In some cases, it might be a larger tag indicating engineer for wind zones. Wind zones are more of a concern in coastal regions and in areas with high wind, like the mountains. However, in most of Georgia, wind zones and snow loads are not a concern. Some parts of the country have restrictions on placing manufactured or mobile homes due to inadequate snow load and wind zone ratings, but this is not a major concern in Georgia.
We Are Mobile Homebuyers
So, those are the things you need to know about selling a mobile home in Georgia. We purchase mobile homes for cash in Georgia. We have bought many mobile homes across Georgia, from the north, east, west, south, and the Metro Atlanta area. I am very familiar with the process, and we have bought many homes.
If you have a manufactured home that you want to sell for cash, we would be happy to make you an offer. We prefer mobile homes on land, but we will also consider those located in parks. However, it’s important to note that many parks have restrictions that may prevent us from buying them. Keep that in mind.
Let’s Connect
If you are interested in selling your house, we would be interested in making an offer on it. I am a real estate agent with OneSource Real Estate in Woodstock, Georgia, and I can also assist you with listing your property. However, our preference is to buy properties for cash. I have extensive experience in buying, selling, and renting properties, and I am primarily an investor, not just a real estate agent.
Thank you for watching this video. Feel free to check out our other videos where we will discuss specific issues related to mobile homes. If you are interested in selling your property, you can visit GAmobilehomebuyers.com and fill out the form, or you can go to Arborviewhomebuyers.com, our main house buying website. Both will connect you with us.