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Manufactured Home Parks

In-Park Sale of a Manufactured Home

An in-park sale occurs when a resident sells the his or her home to a buyer who wants the home to remain in the same park. A resident has the right to sell the home within the park regardless of the home’s age.

The park cannot:

If a park owner is licensed as a dealer, a park owner may agree in writing to broker the in-park sale of a resident’s home.

The park can:

When selling a home through a broker, the broker must be a licensed manufactured home dealer or a licensed real estate broker. A resident can sell the home they own and live in. If a home or lot does not meet existing park rules, the park can require the owner to follow the rules before the park approves the sale of the home.

The park owner may require a prospective buyer to agree to rules different from those that applied to the resident who is selling the home. However, the park owner cannot enforce any rule adopted or amended after the resident entered into the rental agreement that would:

However, if a home, shed, or other structure has become so dilapidated that repair is impractical and total replacement is necessary, the park may require replacement by the resident or prospective buyer in accordance with a generally applicable rule adopted after the resident initially entered into an agreement with the park.

Park’s Approval of a Buyer for Residency

The park has the right to approve a buyer as a resident. The seller must tell the prospective buyer, in writing, that the sale is subject to final approval by the park.

When the prospective buyer seeks to become a resident, the park owner may require the prospective buyer to submit certain information. The required information may include:

The park must comply with the following when processing a buyer’s application:

Safety Disclosure and Repairs

The Legislature repealed the law that previously required the seller of a manufactured home within a park to provide a “safety feature disclosure form” to any prospective buyer. Sales of used manufactured homes manufactured after June 14, 1976, must comply with the “Notice of Compliance Form” available here.

Repossession

A manufactured home can be repossessed under the following circumstances:

A secured party may commence repossession of a manufactured home by personally serving upon, or by sending by certified or registered United States mail and concurrently sending a copy of the notice by first class mail to the occupant of the manufactured home a notice and, if the occupant is not the debtor, by sending a registered or certified letter to the last known address of the debtor under the security agreement. The notice must set forth the circumstances constituting the default and state that the secured party will, at the expiration of a 30-day period following receipt of the notice, seek a court order removing the occupant from the manufactured home and repossessing the manufactured home, unless the debtor or the occupant acting on behalf of the debtor cures the default prior to that time. The notice of default must contain the following language: “Your loan is currently in default. Contact us immediately at [insert phone number] to discuss possible options for preventing repossession. We encourage you to seek assistance from the foreclosure prevention counseling program in your area. Nearby community agencies will answer your questions, offer free advice, and help you create a plan. You can contact the Minnesota Home Ownership Center at 651-659-9336 or www.hocmn.org to get the phone number and location of the nearest foreclosure prevention organization. Call today. Waiting limits your options. IF YOU DO NOT BECOME CURRENT ON YOUR LOAN WITHIN 30 DAYS, WE WILL SEEK A COURT ORDER REPOSSESSING THE HOME, AND BY COURT ORDER YOU WILL HAVE TO VACATE THE HOME.”

A debtor, or an occupant of a manufactured home acting on behalf of a debtor, may within the 30 day period, cure a default by tendering full payment of the sums then in arrears under the terms of the security agreement, or by otherwise remedying the default, and by paying the reasonable costs, not to exceed the sum of $100, incurred by the secured party to enforce the security agreement. Cure of a default shall suspend the secured party’s right to seek repossession of the manufactured home.

In addition, if the debtor does not cure the default within the 30-day period, the secured party must also send a registered or certified letter and concurrently send a copy of the notice by first class mail to the occupant of the home and, if the debtor is different than the occupant, to the debtor, stating that the debtor has 30 days to reinstate the loan by paying the defaulted amount plus additional allowable fees incurred by the secured party in order to regain possession of the home.

The reinstatement notice shall contain, at a minimum, the following information:

  1. The name of the secured party, the debtor, each current assignee of the loan, if any, and the original or maximum principal amount secured by the loan;
  2. The date of the loan;
  3. The amount in arrears on the loan as of the date of the notice;
  4. A description of the manufactured home upon which the loan is secured; and
  5. The amount of allowable fees incurred by the secured party in order to regain possession of the home prior to the court order.

The reinstatement notice must also include the following language: “Your manufactured home is currently being repossessed. Contact us immediately at [insert phone number] to discuss possible options for reinstating your loan. We encourage you to seek counseling with the foreclosure prevention counselor in your area. Nearby community agencies will answer your questions, offer free advice, and help you create a plan. You can contact the Minnesota Home Ownership Center at 651-659-9336 or www.hocmn.org to get the phone number and location of the nearest counseling organization. Call today. Waiting limits your options. If you do not become current on your loan within 30 days, including any additional fees, you will no longer be entitled to reinstate your loan. We are seeking a court order repossessing the home, and by court order you will have to vacate the home.”

Except in cases of voluntary repossession, upon expiration of the 30-day period specified in the notice of default, a secured party must apply to the district court in the county in which the manufactured home is located for an order directing the seizure and delivery of the manufactured home, so long as the right to reinstate has not been exercised. The exercise of the right to reinstatement suspends the secured party’s right to seek repossession of the manufactured home and shall immediately terminate any court action filed.

The party repossessing the home has the right to sell the home through an in-park sale if the following conditions are met:

A secured party offering a home for an in-park sale may be evicted for the same reasons a resident could be evicted.

To repossess a home, the repossessor must bring the resident to court in the county where the home is located, rather than any county the repossessor might choose.

Removal of a Home After Repossession

When a secured party repossesses a manufactured home and removes the home from the park, the secured party owes the park owner rent for the period beginning with repossession and ending on the last calendar day of the month the home is removed. However, the secured party would not owe past due rent prior to the time the secured party accepted voluntary repossession or took action if:

If the secured party fails to meet any of these conditions, the secured party would owe the park owner up to three months of past due rent, excluding late fees or other charges.