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June 2015

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JUNE 2015 8 THE JOURNAL No. 6 on Get It Quick Page As noted in part 1 of this article from the May 2015 issue there are usually at least two types of liens. Both of these lien types are "enforced" – or collected in a similar fashion. For a warehouse lien, the park can begin to enforce the warehouse lien when the former tenant vacates or an un- lawful detainer (eviction) judgment has been en- tered against the former tenant. For a warehouseman's lien, the park may enforce upon expiration of the required notice to all other per- sons or entities that may have an interest in the property (such as mortgage holders, other regis- tered owners of the mobile home, or junior and legal owners as well). The enforcement process for enforcing the two liens is also very similar. However, the require- ments for either type of lien being utilized are stringent, strict, and carefully reviewed by state courts responsible department for enforcements. This is because the resultant lien sale effectively re-titles the home into another name. And while the liens are enforced after a legal process such as eviction, the sale process whereby title is altered is not a judicial or court process. The power of these lien enforcement sales is very strong. For parties familiar with real property proceedings, the warehouse lien and warehouse- man's lien are both similar to a non-judicial fore- closure. Both a foreclosure and a warehouse lien sale require notice to all junior interest holders, and further require that the sale date, time, and location be published in a local newspaper of "general circulation." In California, and many other states, and as is similar in non-judicial real property foreclosure sales, the park (or creditor causing the sale) will often become the owner of the mobile home fol- lowing the warehouse or warehouseman's lien sale. This is because the park has a right to "credit bid" the amount it is owed. What this means is that the park can bid, without verified funds (as is required from all other attendees) up to the amount it is owed – otherwise known as the amount of the item the park has against the unit. COMMUNITY LAW BY JONATHAN C. BOND Warehouse Liens and the Manufactured Housing Industry (Part 2) \ 10

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