We have a MHP in the Midwest with 58 TOHs, all on month to month contract.
The City wants to buy the park from us, but they want the land only, they do not want the homes. They want us to remove the homes prior to the sale. We think this is highly risky, if they walk the deal our park value has been reduced to the land value only. We are reluctant to do this due to the obvious liability risks and headaches.
Our bank lender says the only way that the bank would agree to allow us to remove the homes prior to closing would be for the City to place the entire purchase price in cash in an Escrow Account with the bank. The bank would want to make certain that the Escrow Agreement is airtight and wouldn’t allow the City to “walk away” from the deal.
Most of the tenants are going to be very unhappy if they are ordered to remove their homes from the park. They would probably attempt to get the media involved, legal aid, etc. We’re not interested in any of that.
However, the city also has two other potential sites for their planned development and we don’t want to lose them as a buyer.
Does anyone have knowledge or experience with a situation like this? What would you do? Are there any companies that specialize in dealing with this, any referrals?