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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 38 February 2024 F E A T U R E S T O R Y W ith the rising cost of tradi- tional site-built housing, manufactured homes are often a more affordable path to homeownership. In Michigan, manufactured homes are treated as per- sonal property rather than real property. As such, they are titled just like a vehicle with ownership records maintained by the Secretary of State. The vehicle title can subsequently be retired via affixture, allowing the ownership of the property to run with the land. Therefore, it is vital for lenders and their agents to under- stand how mobile homes are identified, titled, and legally affixed. Upon manufacture and final in- spection, the Secretary of Housing and Urban Development (HUD) gives each unit of a manufactured or mobile home a certification label. This certification label contains a unique label number known as a HUD tag number, which is stamped onto a metal plate and attached to the outside of the home. Each HUD tag number consists of three letters followed by six numbers—with multiwide homes receiving multiple HUD tag numbers. Each home is also assigned a serial number. In Michigan, the serial number is often the same as the Vehicle Identi- fication Number (VIN); however, this is not always the case. When a mobile or manufactured home is purchased, the purchaser must apply for a Certificate of Manufactured Home Title. This title certificate will name the purchaser as the owner of the mobile home and list other important information, including the manufacture year, make, and model of the mobile home, the serial number and/or VIN, and the name of any secured lienholders on the home. This certificate is the proof of ownership and what must be transferred in any subsequent sales of the home unless the home is legally affixed. The best time to complete a transfer and affix the mobile home is at loan orig- ination, since all relevant parties are "at the table." Nonetheless, it's often the case that this issue only arises in preparation for foreclosure or sale at REO. If a mobile home is found to be unaffixed, the pro- cess for applying for title in the lender's name and legally affixing the mobile home can commence once foreclosure is completed and redemption has expired. In the past, lender's agents were able to apply for a certificate of manufactured home title by providing the Secretary of State the Sheriff 's deed showing that the lender has legal ownership and posses- sion of the property after a foreclosure. However, the Secretary of State has recently updated their guidelines and advised that they will no longer accept a Sheriff 's Deed as proof of ownership. There are three methods for the lender or purchaser to obtain ownership after foreclosure. The first method would be to obtain a transfer of the certificate of title. The lender will need to obtain an original certificate of title, either from the prior owner directly or by obtaining a duplicate from the State and have the prior owner sign ownership over to the lender. This method works best when the lender is working with a cooperative borrower or estate, such as during the process of a deed-in-lieu of foreclosure. The second method is via Affidavit of Missing Mobile Home Title. In 2022, the Michigan legislature enacted MCL 125.2330K in an effort to aid those owners who either lost or never received the certificate of title to a mobile home. The Michigan Secretary of State will issue a certificate of title upon receipt of an Affi- davit of Missing Mobile Home Title. This affidavit must contain all relevant owner and mobile home information, a state- ment that the mobile home is attached to a foundation with the wheels and towing hitches removed, that no further payments are being made to any secured party, and that the mobile home has been affixed MICHIGAN MANUFACTURED HOME TITLE AND AFFIXTURE . B y E R I C A N I C H O L S E R I C A N I C H O L S is a compliance attorney for the firm of Schneiderman & Sherman, P.C.