I am buying a mobile home park that has several existing notes on homes. These notes were created AFTER the Safe Act was created in 2008. At closing, those notes transfer to me. I am giving all note holders a generous option to give me back the home for generous Rent Credits, a lower monthly payment and no insurance payments. If some tenants want to keep the home and note, am I safe to carry out the note under the Safe Act? What are my options?Mark
Why not just buy the park and leave the notes with the present owner.
Greg has a great idea. If he services the notes, then he is 100% on the hook regarding the SAFE Act issues, as he also originated them.If he refuses, contact your state MHA and see what the current thoughts and/or case law is in this scenario. Personally, I think it’s unlikely that they would jump on you for “inheriting” those existing notes, but the SAFE Act is not something that you want to leave up to speculation.