Rights of Legal Owners and Junior Lienholders

Legal owners and junior lienholders may have a security interest in a manufactured home. After receiving a termination of tenancy notice, they might write park managers and:

• Offer to sell to the park the obligation secured by the home.
• Indicate their intent to foreclose on their security interest in the home.
• Request that management pursue termination of tenancy and offer to reimburse the park for reasonable costs.

After they foreclose and gain title to a home, legal owners or junior lienholders may sell the home to a third party. They must:

• Notify management in writing;
• Make repairs so that the home complies with park rules and health and safety standards; and
• Continue to pay rent, utilities, and fees.

If the registered owner, legal owner, or junior lienholder do not notify park managers and the home owner vacates the home, managers may remove the home or store the home on its space. Managers may record a warehouse lien on the home. The lien shall cover the costs of dismantling, moving, and storage of the home. Warehouse liens are superior to other liens. Managers may sell the home to enforce the lien. The sale does not cure defaults of the home owner.

Civil Code Section 798.56a.
Copyright - Carl Eric Leivo, Ph.D.
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