Mobile Homes
Overview
Mobile Homes are common problem in title insurance. This is because they start out as personal property that can be easily transported on and off of a piece of real property because they have axles in their base and can be easily put on wheels for moving.
Conversion
Conversion of a mobile home is typically accomplished in most state by completing two steps:
- Retiring the mobile home title
- Physically affixing the mobile home to the underlying real property
Endorsement
The ALTA 7 is the policy endorsement used when a mobile home has been converted to real property. It is typically available for both owner and loan policies in almost every state.
Existing Liens
Mobile homes are often financed. When the mobile home is still personal property, the financing usually takes the form of a lien listed on the Certificate of Title to the mobile home. In some states this is done in combination of filing a UCC financing statement. When a mobile home that was originally personal property with any type of financing is converted to real property, in most states the existing financing is then converted into the equivalent of a mortgage often without the need for any additional filing.
