My understanding of the CASH program is that it provides the favorable terms that it gives tenants because the park owner is ultimately responsible in the (unlikely) event of tenant default. My question on this is twofold: (1) Is it the owner, or the actual Park (LLC) that is responsible in the event of MH tenant default? and (2) How is that liability transferred (or is it?) when that owner who has undertaken CASH homes now sells the park? (i.e. how is the sale arranged when owner is personally guaranteeing x number of CASH homes?, etc).
Would love to hear from anyone who has insight on this. Thanks in advance.
Do a search. Somewhere on here is a link to the webinar. It answers all those questions and a lot more.
Rmpratt
I just got signed up with the CASH program and have asked this same question.
First, it is the dealership license-holding entity that agrees to buy back homes and they also wanted a personal guarantee in my case. This could be because of my antiquated ownership structure; I think they want that personal guarantee if the holding entity is less than 2 (or 3?) years old as well.
Second, I asked frank and also a rep of 21st about resale: the agreement of sale usually includes the buyer assuming the guarantee of the homes. The 21st rep explained that he has seen zero or 1(can’t remember) new owner get turned down in an assumption. If I remember correctly this isn’t a requirement, but sellers/guarantors generally don’t want to be tied up to homes that aren’t in a park they own.
Hope this helps
Jared, PA