Mobile Homes Claims Avoidance

Transcription

1 Mobile Homes Claims Avoidance David Morgan, Esq. Grab Tab Handouts 1

2 Can t Hear Through Your Computer Speakers? Telephone Dial-in (XXX) XXX-XXXX Access Code: XXX-XXX-XXX Audio PIN: Check the Audio panel Asking Questions Our Speaker David Morgan, Esq. 2

3 Spotting Clues Spotting Clues Property Use Manufactured Housing - Double Wide PROPERTY DATA CARD #1 Building Use 0213 Manufactured Housing - Double Wide Spotting Clues 3

4 Spotting Clues Poll Question True or False? A mobile home is only insured if a description of the mobile home is included in Schedule A of the policy. Insuring Provisions Policies 1(g) "Land": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, venues, alleys, lanes, ways, or waterways,butthisdoesnotmodifyorlimittheextentthatarightof access to and from the Land is insured by this policy. 4

5 Insuring Provisions Policies Mobile homes and recreational vehicles. (1) A mobile home shall be taxed as real property if the owner of the mobile home is also the owner of the land on which the mobile home is permanently affixed. A mobile home shall be considered permanently affixed if it is tied down and connected to the normal and usual utilities. Insuring Provisions Policies COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, (the Company ) Insures, as of Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 3. Unmarketable Title Insuring Provisions Policies Transfer of title. (1) Except as provided in ss and , a person acquiring a motor vehicle or mobile home from the owner thereof, whether or not the owner is a licensed dealer, shall not acquire marketable title to the motor vehicle or mobile home until he or she has had issued to him or her a certificate of title to the motor vehicle or mobile home 5

6 If You Don t Want to Insure It, Except to It The insured "Land" as defined by the policy shall not include any mobile (manufactured) home which may be affixed to or located on the Land, and title to any such mobile (manufactured) home is not insured. Primary Title Services Claims Scenarios The mortgage which we insured did not include the mobile home information nor was a lien properly placed with the Department of Highway Safety and Motor Vehicles. The mortgage went into foreclosure. We had to pay the foreclosure firm to include a count to reform the mortgage to include the mobile home information. 6

7 Claims Scenarios We insured a deed and a purchase money mortgage. Neither the deed nor the mortgage included the mobile home information nor was the mobile home properly transferred. The borrower defaulted on the mortgage and the property went into foreclosure. The borrower then filed bankruptcy and removed the mobile home from the property. The insured lender filed a claim. Mobile, Manufactured, Modular, What s the Difference? A mobile home is defined as a structure, transportable in one or more sections, which is eight body feet or more in width and which is built on an integral chassis anddesignedtobeusedasadwelling when connected to the required utilities and includes the plumbing, heating, airconditioning, and electrical systems contained therein. 7

8 Modular Housing Unit RP Stickers Department of Revenue RP Stickers 8

9 RP Stickers Poll Question True or False? If the property has an RP sticker, title is presumed to be retired. RP Stickers The existence of an RP sticker means that title is retired. The existence of an RP sticker means that you do not have to transfer title to the mobile/manufactured home. 9

10 No RP Sticker? All Hope Is Not Lost Plan A: If the mobile home is new, provide proof to the DMV that sales tax was paid at the time of purchase from the dealer. Plan B: Check to see whether the mobile home is being taxed as real property. If it is, see whether the property appraiser will provide an affidavit to that effect. Plan C: Determine the value of the mobile home at a local mobile home dealer who will have a blue book. Pay sales tax on that amount. Transferring Title to Mobile Homes Step 1: Close on the real property as you normally would Step 2: Obtain the mobile/manufactured certificates of title Step 3: Verify the ownership on the DMV website Step 4: Deliver the titles, application for transfer (Form HSMV 82040), proof of RP sticker to local tag office Step 5: Pay all of the necessary fees Step 6: Deliver title to new owner Transferring Titles with Liens George Soros Title Agent Elon Musk 10

11 Transferring Titles with Liens George Soros Title Agent Elon Musk Transferring Titles with Liens George Soros Title Agent Elon Musk Placing a Lien on the Mobile Home Title Jeff Bezos Bloomberg Bank 11

12 Placing a Lien on the Mobile Home Title Jeff Bezos Bloomberg Bank Placing a 2 nd Lien on the Mobile Home Title Jeff Bezos ZUCKERBERG Bloomberg Bank Zuckerberg Bank Placing a 2 nd Lien on the Mobile Home Title Jeff Bezos ZUCKERBERG Bloomberg Bank Zuckerberg Bank 12

13 Placing a 2 nd Lien on the Mobile Home Title Jeff Bezos ZUCKERBERG Bloomberg Bank Zuckerberg Bank Placing a 2 nd Lien on the Mobile Home Title Jeff Bezos ZUCKERBERG Bloomberg Bank Zuckerberg Bank Foreclosures of Non-Retired Mobile Homes Mortgage 13

14 Foreclosures of Retired Mobile Homes Mortgage Poll Question True or False? All mobile home titles must be retired. Myths About Title Retirement All titles must be retired. Titles must be re-retired upon every transfer. Titles are automatically retired when the owner obtains an RP sticker. Titles are uninsurable unless they are retired. 14

15 Procedure to Retire a Mobile Home Title The owner owns both the mobile home and the real property. The mobile home is permanently affixed to the real property. The owner records a sworn statement that he owns both the real property and the mobile home to which is attached the original title to the mobile home and the legal description of the property. The owner than files an application with the Department of Highway Safety and Motor Vehicles to retire the title. Retirement Logistics Retirement Logistics 15

16 Retirement Logistics Retirement Logistics Retirement Logistics 16

17 Retirement Logistics Retirement Logistics Mobile Home Claims Avoidance David Morgan. Esq. 17