I would run this up the chain to someone higher with the specific question of what 21st will do to protect you the guarantor of the loan against a bad actor who is abusing the system to get a home for free.
If you are going to be required to step into the shoes of Borrower then you need to be able to have some strings to keep Borrower in line – and your big “stick” is the threat of evicting the people but keeping the collateral Through abandonment proceedings if necessary, or foreclosure, or deed-in-lieu, etc. You have to have a string on the collateral – just like 21st has the legal mortgage to protect them.
If you don’t have strings on the collateral and have to wait for 21st to Foreclose, and they’re going to foreclose on you before they foreclose on [small fish hard to find] then you’re essentially betting that the Buyer will pay the home off in full. Which might or might not be a good bet. If they trash it and abandon because they can’t move it (because you can stop the Mover with your Documentation of [whatever]) then you’re in the same place you would have been without 21st. You brought in a home and had to repo it. You have control of the collateral which is worth something.
If Buyer comes to move it out and you can’t stop then and 21st can’t stop them and they do, and then they stop paying 21st, now you are worse off than you would have been because you have no home AND you’re out the money.
We withdrew from the 21st CASH program for this reason or similar – the customer pays a lot of fees and has to jump through a lot of hoops to qualify for a 8% or 10% or ++ mortgage after which you’re underwriting a liability that is 15 or 23 years long and there’s no provision for transferring that liability. [For instance, you should be able to BUY the NOTE from 21st for its principal balance plus some transfer fee. Then you can say, I’m free of the obligation to 21st but Customer still has the obligation to Me. And then you can transfer that to the new Park Owner and it’s worth something (maybe less than what you paid for it, but at least something and you’re out).
Imagine I have 50 of these underwritten guarantees between 21st and Customer and Me as Parkowner.
Now I want to sell the park. Buyer is not going to pay anything for these 50 guarantees (they are not a revenue stream to me, or to Buyer – although they are to 21st – but a potential liability to you or new guarantor) and 21st is not going to let me off the hook (why would they?) I can’t force them on Buyer and I can’t force 21st to let me off the hook and pretty much I am obligated to make up any loss that 21st suffers upon the creaking of their stop-loss foreclosure cogs and gears.
And we all know how much foreclosure can cost a big slow behemoth. It’s a huge hassle and it takes time and they have expensive legal and professional costs. (e.g., they will hire a firm to come take pictures, they will hire a firm to re-market the home, they will hire a firm to oversee the security and management of the home in the interim, etc).