[WSBARP] Mobile Home on foreclosed real estate

[Richard Holland]

This situation has come up more than once.  The basic facts are as follows:


1.       Mobile Home on Property on a foundation, hooked up to utilities.

2.       Title to the mobile home has not been eliminated.

3.       Lender forecloses on the property.

4.       This would appear to create a situation where the MH is owned by one person and the property is 'owned' by another.

Here is the issue:

According to County Assessors, even though the Title with the Department of Licensing has not been eliminated, the Mobile Home is no longer personal property.

"DEFINITION OF REAL ESTATE:  A used mobile home is defined as real estate for purposes of this tax when the following conditions are met: 1. The mobile home was previously taxed by: (a) having been sold at retail and the retail sales tax has been paid (Chapter 82.08 RCW), or (b) having been used, and the use tax has been paid (Chapter 82.12.RCW). 2. The mobile home has substantially lost its identity as a mobile unit by virtue of : (a) being fixed in location upon land owned or leased by the owner of the mobile home, (b) being placed on a foundation (posts & blocks), and (c) having fixed pipe connections with sewer, water, and other utilities."

Thus we end up with a situation where the title cannot be eliminated because the registered owner is gone, uncooperative, etc. so DOL, Lenders, and Title Companies consider it personal property but RCW 82.45.032 clearly 'converts' the "used mobile home" into real property as far as the Assessor is concerned.  Because the titles have not been 'eliminated' the Counties get around this by not "including" the mobile home in the existing tax account but instead creating a second real property tax account for the mobile.

No one I have talked to is quite sure how to proceed to reconcile these issues.  It has created a situation where the buyer of the property is going to be obligated to pay real estate taxes on a mobile home that they cannot get title to and that simply seems untenable.

Is there any light anyone can shed on this?  Some avenue I am missing?  Does the buyer file some sort of 'quiet title' action over the mobile home title?

Thanks,

Rich Holland

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