Selling your Park and Note Default Options

mobile home university
1

For those of you that have Owner Financed your Park, have you ever requested from Buyer a limited Power of Attorney and use of 3rd party arbitration as a means to transfer title back to you upon note default by the Buyer?

Benefit is less time and money to get your property back compared to traditional Foreclosure, but not clear the downside risk(s), if any. I saw this happen on a non-MHP asset recently and was curious if anyone uses it. I know you’re not lawyers, just looking for practical comments. Seems like an interesting tool for selling.

I realize that you want to do as much vetting of your Buyer as possible, just evaluating other backstops as bad things can still happen to good people.

Thanks all!

2

I believe i have seen @mhmike comment about different scenarios on owner carry so tagging him to see if he has any insight.

3

I doubt this could work unless there was a notice of agreement stipulating the terms of default which had been recorded before the previous sale had closed.