Problem converting KS home to real property

kwmacMarch 31, 2013

We recently had the sale of our MH in Kansas fall through because the lender refused to sign off to convert the mobile home to real property. The buyer's lender required it to be real property. Short of an F4 tornado, that home isn't going anywhere. As required by law it is on a permanent foundation with steel straps and has been since it was purchased as the lender is well aware. It met all of the state of KS requirements for the elimination of title.

Sales in the area are very depressed and it is tempting to leave the lender holding the home. Do we have any legal recourse? Assuming we can even find another buyer is there any way to prevent the lender from sabotaging another sale?

PS We do have good credit and enough equity to refinance if we can find a lender willing to refinance a MH.

Thank you for reporting this comment. Undo

The question I have is why the lender would not sign off on the conversion. Is the land owned outright, or is there another security interest on the land? I can see where a lender would balk at that.

If I were the MH lender I would only sign off on the conversion if my security interest in the MH was transferred to the land, since in Kansas once the conversion is done the MH becomes "incident" to the land.

If I held the loan on the land I wouldn't sign off on the conversion at all unless the value of the MH plus the land exceeded the amount owed to me plus the amount the MH lender was owed.

    Bookmark   March 31, 2013 at 4:58PM
Sign Up to comment
More Discussions
Insulating an older Mobile home
HI, Im new to the forum. Glad to meet you all and really...
Are the smaller single wides cheaper than larger?
I would like to eventually get a PINE GROVE single...
Moving an old Windsor (70's) single wide SAFE?
A friend of mine has a 1970 ish Windsor 14X 70 or 12...
Selling Older Manufactured Home/Financing
Hello everybody, I am new here. Been reading alot....
Grouted Vinyl Tile & moving Mobile Home
I have recently purchased an older mobile home. It...
Sponsored Products
Deny Designs Khristian A Howell Granted Fleece Throw Blanket - 14213-FLESMA
$59.00 | Hayneedle
AFD Home Classic Urn White Marble
Beyond Stores
Bedroom Lamp: Portable Lamp Series 23 in. Beige Table Lamp PTL004
Home Depot
Whistler Dark Wicker Table Lamp
$137.00 | Bellacor
Safavieh Indoor/ Outdoor Courtyard Crisscross Pattern Brown/ Bone Rug (8' x 11')
Jamie Young Burlap Shade Tie-Dyed Glass Buffet Lamp
Lamps Plus
Brown Tree Copper Wall Sculpture
$795.00 | FRONTGATE
Home Decorators Indoor/Outdoor Area Rug: Home Decorators Collection Rugs
Home Depot
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™