Many parents believe that leaving a home to their child is an act of love that will ultimately bless their child or children in the end, but this isn't always the case. Most recently, a gentleman contacted Gen47 regarding the manufactured home that his mother left him in her passing. He wasn't informed about the property until nearly half a year after burying his mother, who died with only one payment left to own the house in full.
The mobile home rented land in a community, thus was quietly accruing debt until the rental community management realized the home was vacant and began taking ownership of what they believed to be abandoned property.
The son learned that he inherited a property that needed a lot of work, that had debt against it, and wouldn't sell for enough to recuperate the costs to renovate.
A Rock anda Hard Place
The son was given two options, he could sign over the title to the manufactured home community for nothing and potentially, they would forgive the lien against the home and recoup costs by selling the property themselves; OR the son could try to sell it and pay back the debts himself.
Getting Your Affairs in Order
What this scenario taught us is that people need act proactively to protect their family from inheriting debt. The gentleman in this case didn't have many options and no matter what the debt on the home forced his hand in a direction that he didn't want to go.
As a parent, we'd encourage you to ensure that your descendants know what you own or how to find this out in the event of your death. You may look into selling or auctioning off your assets prior to passing to make things simpler, but don't forget to ask your children what they want or would plan to do with an asset if they inherited it.
It's unfortunate to hear how a young man truly felt the loss of his family's farm when it was sold, because the grandfather sold it thinking no one wanted to manage the farm.
It's an uncomfortable conversation to have when you know it acknowledges a loved one's end of life, but it's always better to know what someone wants for sure before you no longer have the ability to ask.
A grandfather entered in-home hospice care some time after his 100th birthday, and as family came to they were surrounded by a house full of memory books, old photos, videos, and even the personal items that had belonged to the long dead grandmother (her passing had occurred over 10 years prior). Having multiple sons, I couldn't help but wonder how it might be a positive experience for the veteran to go through his family history one last time, sharing his stories and voicing his desires for which of his sons should inherit each piece of his legacy.
Manufactured and Mobile Homes
Unfortunately, the value of manufactured or mobile homes is not comparable to that of traditionally built single family houses, because they are built to be temporary and transportable.
Land Value vs Home Value
While land doesn't really lose value, buildings depreciate in value if not maintained. If a manufactured home sits on land that it rents, then you can end up in a situation that makes you feel trapped. As long as the building sits on the land, then the landowner is entitled to rent. It takes money, time, effort and a destination to relocate a mobile home; so if you don't have any one of these things available to you then you'll have to work things out with the landowner.
Communication is Key.
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