I'm in the process of selling a trailer for $13,000. The purchaser wants to make a down payment 5 thousand dollars and pay the balance over period of time Including interest. How do I place a lien on the property?

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    Is this in the united states? You don't have to do a lien. You could just keep the title till it's paid off. – maplemale Sep 16 '16 at 16:04

Check how a mobile home is classified where you live. In some states (assuming you live in the US) it's classified like an RV / vehicle. In most states, it depends on the mobile home. I am only aware of how to do this for a vehicle classification, which may / may not be the same in your case. You need to find that out first.

Keep in mind you could just keep the title until the payments are complete. Carrying a loan with the title transferred to the buyer and a lien can be a bit complex. But it is possible. If you really want to do it that way, call your local DMV and ask about the entire process because it varies by state. Tell them you want to transfer the title into the buyer's name with a lien for the loan you are carrying. There are two main action items here:

  1. The promissory note needs to be written and should name both parties, have both signatures, 2 copies and contain the starting/ending date, the payment amounts (including principle and interest) when the first payment is due and when each payment is due after that. It should contain the late penalties if there are to be any, a repossession period if payments stop (check what the legally allowed period is for your state) and a note about reporting to the crediting agencies with the buyer's authorization allowing you to do that. There may be a specific form for your state for this piece, though of course it's not required if you don't want to go there. You can also include other things like your right to sell the note to collections etc. Search for standard free forms on the internet, or consider buying one.
  2. The title needs to be transferred to their name at your local DMV and the lien needs to be recorded. It depends on the state you live in. But, most state DMVs allow this with both parties present. There may be a fee and an additional form you have to fill out for a "security interest." This may have to be filed with the DMV who will likely file it with the treasury, or you might have to file it with the treasury yourself.

I would also pull the buyers credit first. Ask them to get you their credit score. They can request a free one from some place like: FreeCreditReport.com. You'll want to check if they have a lot of outstanding debt / late payments etc. You may not want to do this at all depending on what you find, and their credit report may effect how much interest you want to charge in order to make it worth the risk.

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