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We bought what we were told was a "modular home" back in 2001 in mid-Michigan area. This is on private land. At the time, I didn't know the difference/differences between a TRUE "modular" and a mobile home/trailer/manufactured home that people erroneously call a "modular" all the time. Now that I do, I'd never be suckered into buying another one.
This house is a doublewide, with a metal frame on a 5 block foundation. It seems it MUST have originally had a title to both sides. I do have the plate on the siding, and information with original company name and such inside the hinged panel covering the circuit breaker box. That company is out of business by the way. We are the third owners, and NEVER received a title, as it has always been on a permanent foundation on private land. As far as I know, all owners have always paid normal property taxes to the local township, and not yearly license fee's. When we bought it, it transferred via "Fee Simple" transfer like regular homes/property usually do. Apparently, that's no longer good enough when you have a "mobile home" on that property. Even if that mobile home can never easily be moved ever again. In other words, we technically have absolute title to the LAND, but not the house!
So, now we are selling it, and the buyers mortgage company (Wolverine Bank) REQUIRES something called an "Affidavit of Affixture of Manufactured Home". Those weren't even required before 2003 in Michigan! You can't get one without the title, and I since I never got the title, it's a mess.
It appears I now have to go to the township treasurer I've been paying property taxes to for 15 years, and get them to agree to sign a notarized form saying THAT exact mobile home has been on the property for all these years, AND that regular property taxes have been paid on it all this time.
Then assuming the treasurer is willing to do that, I have to pay and post a SURETY BOND, and send this all in to the State for a new title to be created. After I receive that (6-8 WEEKS per Secretary of State I spoke to today) I then have to send it back to the State to get the actual "Affidavit of Affixture of Manufactured Home" to prove the house is permanent to the land it's been sitting on since 1993.
Does ANYBODY out there know any possible way I might be able to expedite this process?
You shouldn't need a title, a mobile home on owned property is real property and would have a deed. Perhaps it's different in your area. The only time you need a title is if it's on rented land and considered a vehicle with the DMV, and you would most likely also need a registration sticker. That's how it works in Florida anyway.
What did you get when you bought it? Just a deed to the land and nothing for the home?
The only way to possibly expedite it is to beg a supervisor in charge to help you and claim hardship and that you need to sell and see if they can expedite the process.
Looks like you are going to have to tell your buyer to be patient or find a different one.
Last edited by LifeIsGood01; 12-21-2016 at 05:52 AM..
Also check your local county property tax appraiser's office and see what they have on file for your property.
If they have a link to click on sales you should be able to see a copy of the deed on file.
I checked on a home in my area that is a doublewide on private land and their deed says both the lot numbers becuase it's on 2 lots and both serial numbers of both halves of the mobile homes.
Last edited by LifeIsGood01; 12-21-2016 at 06:23 AM..
My warranty deed has the legal description of the land, but it does not include the serial numbers showing the house. Which wasn't required back then in Michigan, so wasn't commonly done.
This is a racket they are pulling, because the Secretary of State told me that title records older than around 10 years are typically PURGED anyway!
That means any suckers buying a manufactured house like this and selling after 10 years, will have to go through the same thing, if it wasn't done back then (when it wasn't a requirement, or even had a process to do it then!)
So, there must be hundreds of people having to do this all the time in Michigan. My closing company says I'm for sure not the first that's had this issue.
So, looks like the Surety Bond and filing for a new title and all that is the only solution. That bond will cost $15 per $1,000 of value of just the house itself. That means around $900 minimum for me. I'm already getting slaughtered on the selling price, because our market had a 40% drop starting in August, due to a big company announcing workforce reduction. The people cut are dumping their houses at huge discounts just to be able to move where they can get a new job. I myself lost my job due to that on September 30th.
We bought what we were told was a "modular home" back in 2001 in mid-Michigan area. This is on private land. At the time, I didn't know the difference/differences between a TRUE "modular" and a mobile home/trailer/manufactured home that people erroneously call a "modular" all the time. Now that I do, I'd never be suckered into buying another one.
This house is a doublewide, with a metal frame on a 5 block foundation. It seems it MUST have originally had a title to both sides. I do have the plate on the siding, and information with original company name and such inside the hinged panel covering the circuit breaker box. That company is out of business by the way. We are the third owners, and NEVER received a title, as it has always been on a permanent foundation on private land. As far as I know, all owners have always paid normal property taxes to the local township, and not yearly license fee's. When we bought it, it transferred via "Fee Simple" transfer like regular homes/property usually do. Apparently, that's no longer good enough when you have a "mobile home" on that property. Even if that mobile home can never easily be moved ever again. In other words, we technically have absolute title to the LAND, but not the house!
So, now we are selling it, and the buyers mortgage company (Wolverine Bank) REQUIRES something called an "Affidavit of Affixture of Manufactured Home". Those weren't even required before 2003 in Michigan! You can't get one without the title, and I since I never got the title, it's a mess.
It appears I now have to go to the township treasurer I've been paying property taxes to for 15 years, and get them to agree to sign a notarized form saying THAT exact mobile home has been on the property for all these years, AND that regular property taxes have been paid on it all this time.
Then assuming the treasurer is willing to do that, I have to pay and post a SURETY BOND, and send this all in to the State for a new title to be created. After I receive that (6-8 WEEKS per Secretary of State I spoke to today) I then have to send it back to the State to get the actual "Affidavit of Affixture of Manufactured Home" to prove the house is permanent to the land it's been sitting on since 1993.
Does ANYBODY out there know any possible way I might be able to expedite this process?
That process sounds ridiculous. If it's attached to the land, it's real estate. You don't need an Affidavit of Affixture for it to be considered a fixture of the land.
Unfortunately, lenders can require whatever they want. Maybe you should see if your buyer can look for another lender.
FYI, I did a bit of research on Michigan's Affidavits of Affixture last year. I don't deal with mobile homes, but I've always known that attached mobile homes are treated as real estate, not personal property. Below is a post I made which includes reference to a couple of relevant court cases. Maybe this information can help a bit...but, again, maybe the buyer just needs to try to find another lender. If the Assessor has it listed a taxable real property, it's no longer subject to title registration and it seems foolish to be required to reverse the process to make it personal property again.
Quote:
Originally Posted by jackmichigan
I only said that I didn't "believe" that Michigan had Affidavits of Affixture because I wasn't exactly sure. I just knew that to be considered a fixture to the land, an Affidavit is not required. Plus, I knew that Assessors make determinations as to what is real property for assessment purposes all of the time.
The fact-of-the-matter is that state law (the Mobile Home Commission Act) stipulates what it takes for a mobile home to be considered an attachment to the land, to wit:
"A mobile home is "affixed" to real property if it meets all of the following:
(i) The wheels, towing hitches, and running gear are removed.
(ii) It is attached to a foundation or other support system."
While Michigan does allow for Affidavits of Affixture (it's always good to learn something new), the courts have held that such Affidavits are not a requirement for a mobile home to be considered a part of the underlying real estate, but they are one option. (Interestingly, there is also a process to reverse an Affidavit of Affixture--so attaching a mobile home to real estate is not necessarily permanent.)
Affidavits seem to be more geared to benefit the lenders who might loan money for mobile home purchases. It enables a bit of certainty as to whether a mobile home is affixed, and it perfects the lien for the lender because it can be applied against the entire real estate parcel and not just against the mobile home itself.
There have been a few relatively recent court cases regarding mobile home attachment issues. In Ottaco Inc v Gauze (1997), the Michigan Court of Appeals held that title to a mobile home is extinguished when it is attached to the land (without an Affidavit) since the title becomes merged to the underlying real estate.
Also, in 2007, the Court of Appeals made a similar ruling in the case of Frank R Hix Jr v Frank R Hix Sr. Below is a relevant excerpt:
"The mobile home in this case is clearly affixed to the property. The components for the house were brought to the building site on a trailer chassis. Once those components arrived at the site, they were constructed into a house built on a foundation and basement. Defendant dug a well and installed a septic system, which were both attached to the house. Defendant also constructed a two-car attached garage and an attached sunroom. Central air conditioning and a hot tub are also included in the home’s list of amenities. Thus, it is clear from the facts that defendant intended to make the mobile home a permanent accession to the realty. Accordingly, we conclude that the mobile home is a fixture of defendant’s real property.
Plaintiff argues that regardless of its physical attachment to the land, the mobile home was not statutorily “affixed” to the land because defendant did not obtain an affidavit of affixture as required by MCL 125.2330i. Under MCL 125.2330i(5), when the department of commerce receives an affidavit of affixture, as defined under subsection (1), the mobile home is considered to be part of the real property. However, contrary to plaintiff’s contentions, the affidavit of affixture is not statutorily mandated, and failure to file such an affidavit does not obviate a finding that the mobile home is indeed a fixture to the real property. By its own terms, § 30i states that “[i]f a mobile home is affixed to real property in which the owner of the mobile home has the ownership interest, the owner may deliver” an affidavit of affixture to the department. This language evidences the permissive rather than mandatory nature of the filing of the affidavit. Further, in Mortgage Electronic Registration System v Pickrell, this Court expressly explained that § 30i “created an optional procedure by which the owner of a mobile home affixed to real property could cancel the certificate of title and have the mobile home treated as part of the real property.”
So, as you can see, an Affidavit of Affixture may be used by the owner of a mobile home in Michigan, but a mobile home can still be considered affixed to the land without it.
Jack, I found that earlier post by you last night after I posted this thread. I spent the day today trying to get this mess fixed. I printed out the court cases and took them to the title closing company. They won't accept them, and absolutely insist on my going through the Surety Bond and the whole mess that entails.
I went to 3 different insurance agencies the title company gave me and spoke to them. NONE of them are willing to write the bond, because "it's too much of a hassle". Wasted the whole afternoon on that. I was able to track down the sellers through Facebook, that sold the home to me in 2001. They never received a title either, just a warranty deed... The original owners are dead. As far as I can make out, the original title was surrendered/extinguished when the house was put on the property in 1992. Unfortunately for ME, they didn't include the VIN's on any paperwork/deed, etc (since that wasn't even a requirement back then)
Neither the mortgage company, nor the title closing company will accept anything less than a title and the affixture thingie. Which this whole process now will effectively DETACH the house from the property, only to immediately RE-attach it again! Just by different rules from mid-2003...
So, I'm still working on getting a company to write that bond, and the state to issue a replacement title, and then generate the affixture doc.
I'm told that bond will cost around $900-$1350 AND I'll probably have to switch the houses insurance over to the same company (maybe 1 year up front, $600 or so) Of course that house insurance policy will get canceled once this process finishes, and I finally manage to sell this house.
I'll let you all know how this works out, if it does.
Let me put out this warning now: IF anybody reading this is in MICHIGAN and going to sell a manufactured home on private property via a mortgage, for gosh sakes, make SURE you have all this done BEFORE you even list the property! Don't be left holding the bag, like I am.
This whole process has been a disaster right from the start. My listing agent, (who's a broker for 40 years!, and has done many deals for me over 25 of those years, including being my buyers agent on this mobile!) has (IMO) completely lost it, but hid that fact from me long enough that I'm now trapped via contract to her.
How did you buy the property? Did you get a mortgage at that time? What about title insurance? Did you receive a title insurance policy at the time of purchase? If so, you would think that those companies would do so again.
If the state issues a new title, and subsequently allows the filing of an Affidavit of Affixture (to undo what they just did), I don't understand the purpose of the Surety Bond. Do they not trust that the state action would be sufficient? It all sounds crazy to me.
Maybe you should contact your State Representative and/or State Senator to see if they will contact Ruth Johnson's office (Secretary of State) to see if they can sort things out. If the lender requires an Affidavit of Affixture, why can't the state simply issue one without the hassle of a Surety Bond being involved? And is your mobile home really worth $60,000 - $90,000? That really sounds high. Check what your local Assessor has listed as your State Equalized Value for the entire property...and check what they have listed as the land value.
I wish I had some words of advice, but this is all baffling. A mortgage is secured by the real estate and all fixtures to the land. It is not on the mobile home in and of itself. If they were only financing the mobile home, I could see their justification for seeking the Affidavit because then the land would be added security. But since the mortgage would cover the land to begin with, it really seems to be a foolish exercise to jump through all of these hoops--only to land back at the same place that you started, with the house a fixture of the land.
It might be best to consult with an experienced real estate attorney to see if they can offer any clarity. Most of the people you're dealing with probably have little understanding of the law...or are just stuck in CYA mode.
I don't understand any of it myself, but I'm stuck with their hoops as they are holding their ground on this no matter what. I tried finagling all this with them every way I could, no go. We bought it with a mortgage, and got a warranty deed and title insurance at the time which was properly duly recorded at the time according to standard Michigan law.
New Michigan law says the surety bond MUST be issued for TWICE the value of the house itself. The house itself I'm told is valued at $45k~. That's 1/2 the cost of what I'm forced to sell it and the property for. That means a $90k bond. Cost of bond is $15 per $1k. I might be able to talk down the price some for the company that will create the bond, I don't know yet. The state (Sec of State told me this) will NOT even consider generating a new title without the bond, which said bond is issued for 5 years in case anybody might ever try to contest it. I don't know if I get a refund after the 5 years.
I do not have any time left on the deal to contact my state rep, or hire a lawyer. I lost my job Sept 30th, was screwed out of a full pension, I have no chance of finding another job at present locally that pays anything even close to what I was making, (I'm 58 years old, never had to get a degree as I worked my way up, and not in the best of health due to spinal issues) and I do not have time or reserves left to carry two houses much longer. I never even imagined all this could happen in a year, or never would have bought and moved into a different house. The contract was written to stretch to Jan 25th, and there's no guarantee the buyer would be willing to extend that. Since I can't as of yet prove clear title because of all this BS, I'm backed into a corner, royally screwed and have no choices left here.
The entire market here is extremely fragile right now, and a serious buyers market. Lakefront houses are selling for $100k or more LESS than they sold one year ago. Houses like mine are selling for $30-40k LESS than 1 year ago. There's so many houses on the market, it's great to be a buyer right now, but not a seller.
For total balls-up like this situation, your best bet is to contact your congressman to see if he can help. This is a red tape disaster and you have done everything right, so someone needs to guide this through 'the system'. Congressmen (well, their offices) love to solve these cases. Worth a try.
For total balls-up like this situation, your best bet is to contact your congressman to see if he can help. This is a red tape disaster and you have done everything right, so someone needs to guide this through 'the system'. Congressmen (well, their offices) love to solve these cases. Worth a try.
The Affidavit of Affixture is a state issue...not federal. I suppose it wouldn't hurt to try, but Congressmen usually won't delve into state issues.
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