​The Landlord Lien Sale – What to do?

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I was recently contacted by a client asking what we should do with a manufactured home located at one of the Parks we manage after a successful unlawful detainer hearing. Generally, I always encourage a landlord to conduct a lien sale and try to recoup some of their loss by selling the home to a new tenant who will then assume the responsibility of paying for restoration of the house. This is a great opportunity for a landlord to get out from under some bad debt and also get a new revenue stream in a new tenant! Mobile Home restoration and buying them at public auction can be an excellent way to make money – but let’s save that discussion for another blog post.
In the event you have decided to conduct a landlord lien sale there are a number of steps you must take. First, you must provide the tenant with a copy of the notice of sale, return-receipt requested mailed as of the date of the letter.

The landlord or their agent will need to visibly post a copy of the landlord lien letter to the mobile home located at the park.

The date for the sale of the home must be indicated. At least one week prior to this date you must place an advertisement in the local paper for the area. The Camas Post Record is generally inexpensive – if you are in the Camas / Washougal area. I also suggest calling around to local newspapers to see who has the best rate. It may seem archaic – but you must publish a newspaper of general circulation.

The listing must contain the make and model of the home, the location of the sale, and the date and time of the sale.

Newspaper advertisement should read as follows:
(MAKE & MODEL) Mobile Home for Sale-Public Auction-Lien Foreclosure, DATE at 9:00am, LOCATION.

On the date advertised and provided in the Notice, you should conduct the public sale and sell the mobile home to the highest bidder. You may bid your lien amount at the public sale: include up to four (4) months rent and other charges owing under the rental agreement, plus all attorney’s fees, and other selling expenses.  If a prospective buyer makes a sufficient bid, you should sell the mobile home to the buyer at the bid price. Any surplus must be returned to the tenant. Tenant is not liable for any deficiency under state law.

Transfer of title to a mobile home purchased at a landlord lien sale is similar to transferring a title of a mobile purchased in any other manner. However, because the buyer at the landlord sale will not typically receive an original Certificate of Title, the DOL requires the completion of some additional forms. These forms include: Affidavit of Vehicle Sale Landlord Lien, Affidavit of Loss / Release of Interest, Vehicle Title Application, and the Mobile Home Real Estate Excise Tax Affidavit.
Additionally, the DOL will need to be provided with the following:

• Notice of Landlord’s Lien and Foreclosure
• Certified Mail and Return Receipts
• Advertisement

 
To transfer title the buyer at the landlord’s sale must first pay all excise taxes and assure that property taxes are current. Once paid, the buyer can then present the above form to the DOL an request title of the mobile home be transferred to the buyer.
That about sums it up if you are looking to sell a mobile home that you have either acquired due to landlord lien OR if the property was abandoned. In our next article we will discuss what to do in the event the home is abandoned and he landlord wants to remove it from the park.
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Stay diligent my friends! As always feel free to call me at Sterling Properties if you have any questions about the procedures outlined above.