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We are pledged to the letter and spirit of U.S. policy  for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, or national origin.
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Michigan Manufactured Home Title Cancellation Process
Michigan Manufactured Housing Association is the state wide dues paying member association representing all facets of the manufactured and modular housing industry. MMHA provided statewide leadership to stakeholders in the title, finance, and Register of Deeds associations concerning the issue of title cancellation of manufactured homes (1976 HUD code) and mobile homes (pre-June 15, 1976 construction). Manufactured home retailer/home builders may find themselves walking bankers and others through this process, as it is still relatively new and we are at the beginning of the learning curve. To make the closing work for the lenders to secure their lien with no window of doubt about their secured interest the following steps should be followed.
You would complete and send the Affidavit of Affixture to the Michigan Department of Labor and Economic Growth (DLEG) (see instructions on form included in the link below) to be received and filed by the department to cancel the title. (A title is referred to as a certificate of manufactured home ownership in the act and rules) Putting the title cancellation in the mail ensures due diligence in executing the lien process and procures the lien on the home as real estate. Wait for the mail to return a single original to the bank with the stamped "filed" Affidavit of Affixture cancelled title, and record it at the Register of Deeds using the original Affidavit of Affixture. The state "filed" copy of the Affidavit is then microfilmed into the land record at the Register of Deeds into perpetuity. This lays a foundation in the future for land sale transactions to be clean and clear and more closely follows normal real estate lien convention. To make the home closing date coincide with the Affidavit, the bank has the home owner and retailer sign an Appointment of Agent at closing to change the date of the Affidavit to the day of the bank closing date, even though closing may have been completed weeks previous.
To cancel the title on a manufactured home affixed to real property it must first be on a foundation or other support system and have hitches, wheels, and running gear removed.*
To file the affidavit with the Michigan Bureau of Construction Codes (the agency that handles the process within DLEG separate and outside of Secretary of State) and record it with the Register of Deeds it to cancel the title use the following steps:
- Fill out original Affidavit of Affixture with the property description (see web site/link address below for the most recent copy of the form).
- The home owner signs their signature(s)
- Notarize the original
- Lien holders must sign off (releasing lien interest) if previously listed on the title
- Return original to the Michigan Bureau of Construction Codes (address on affidavit) (517) 241-9317 for filing along with the original Certificate of Origin that comes with a new home or the Certificate of Title along with the $90.00 fee made payable to the State of Michigan. (DLEG will accept a Certificate of Title that has been assigned from the original owner to the purchaser that is filing the Affidavit)
- When the Affidavit of Affixture is returned from DLEG, send the "filed" stamped copy of the Affidavit (with attached copy of the Certificate of Origin or Certificate of Title) to the Register of Deeds for recording.
Cash Sales
- File the Affidavit with the BCC. After it is executed and returned by the BCC, record the Affidavit with the Register of Deeds. Include a one paragraph letter signed by the home owner stating "once the Affidavit canceling the title has been filed to return it to the retailer, bank, Title Company", or who ever plans to complete the recording process with the county Register of Deeds.
The latest copy of the affidavit is available on the BCCFS web site at
http://www.michigan.gov/documents/dleg_bccfs_mhaffida_134013_7.pdf
If you do not attach a letter requesting that it be returned to an entity other than the home owner, the default recipient of the "filed" copy is the home owner. You can write your own verbiage section on the second page of the affidavit stating where you would like the original Bureau stamped Affidavit to be returned or in the case of Register of Deeds where it is to be returned after it is recorded. Or to get the same result attach a letter signed by the homeowner requesting that the original with the proof of filing stamp be returned to a different entity or address than the owner.
In instances where is no title, Certificate of Origin, court order, or surety bond, or the originating lender has lost the title or out of business, the Bureau has included within the new rules additional options for proof of ownership (see below). These optional procedures include a paper trail of documentation that proves ownership of the home and release of lien. Examples of what will be expected may include; documents such as a previous thank you letter announcing the pay off of the loan that mentions the loan account number or has the VIN number in the letter, and proof of real-estate taxes paid with a valuation notice that includes the home as part of the real-estate, home owner insurance paid receipts, local taxes proof of payment, and other proof documents.
New Rules to the Mobile Home Commission Act
Bold type face = new rules language effective August 1st 2003
R 125.1419 Certificate of origin; addendum to application for certificate of manufactured home ownership.
Rule 419. (1) The certificate of origin shall be attached as an addendum to the application for a certificate of manufactured home ownership when filing for an original certificate of manufactured home ownership.
(2) For the purpose of complying with sub rule (1) of this rule, the certificate of origin shall be immediately surrendered by the lender holding such certificate to the retailer upon request.
(3) The department may authorize the issuance of a certificate of manufactured home ownership without the manufacturer's certificate of origin if the department is satisfied as to the ownership of a home and is unable to obtain the certificate.
For a copy of the legislation that amends the Mobile Home Commission Act 96 of 1987 as amended (public act 44 of 2003) go to http://www.michiganlegislature.org/mileg.asp?page=getObject&objName=mcl-125-2330i
Make special note of the last paragraph of the act called compilers notes. It nullifies the Sixth District U.S. Court of appeals decision in January of 2003 declaring that the sole method to execute a security interest in a titled manufactured home on land is a filing on the Secretary of State's Certificate of home ownership.
Conversion of a manufactured home to real property is one of the requirements in Fannie Mae's seller-servicer guide. The procedures in other states are now posted.
http://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/manufachousing/
*FHA financed homes require an architectural engineer that is licensed in Michigan to stamp the final foundation plans. The state of Michigan Uniform Building Code recognizes that the manufacturer that warrants the home can provide acceptable engineered stamped plans for foundations by an engineer licensed in the state where the home is manufactured (i.e. Indiana). FHA to date maintains a Michigan engineer's review and stamp is one of their requirements regardless of cost to the homebuyer or redundancy. It is hoped that in the future FHA will accept a Certificate of Occupancy from the local building inspector as certification that the home is properly affixed to its foundation.
The BCC can be reached for questions at (517) 241-9317 Building Division
MMHA can be reached through its searchable web site www.michhome.org
If you are in the housing industry join with other manufactured and modular housing advocates at 517-349-3300.
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