Question:

What are the general features of title insurance loan policy on mobile homes?

Answer:

Here are the most important facts to know about mortgage title insurance policies on mobile homes:

  1. It is important that you get an owner's title coverage on a mobile home because, as the name implies, this is a movable home. People buy and move them without bothering for a title search.
  2. Different ownership transfer rules apply if the mobile home is set on a permanent foundation.
  3. Also, the title is separate - one for home, one for land. If a title company assures you that the title of the mobile home you want to buy is in the seller's name because the land shows up under their name in the records, the odds are high that this assumption will be wrong.
  4. It is very likely that the ownership chain has been broken several owners ago and instead of having the title in the name of your seller, it could be in the name of a cousin of the seller who sold it to the current seller; or perhaps it is a HUD foreclosed property and they also never cared to set the title right.
  5. Repossessions, foreclosures, previous owners and unpaid liens are as common title issues for mobile homes as they are for real property.
  6. Currently, title retiring on mobile homes may be required by lenders processing a Fannie Mae or Freddie Mac loan. It is important to know what your lender's requirements are on that issue. It is not a requirement, though, that the owner retires the title of the manufactured home.
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