Must one become safe act / Dodd-Frank compliant to owner finance mobile homes using the “Lonnie Deal” method?
Yes you must become coming to finance Lonnie deals.
The only other options you have are to sell the homes for cash, or rent them out. You might also explore a rent/credit system for greater customer retention.Even without the SAFE Act and Dodd-Frank, there were already serious problems with Lonnie’s formula due to the collapse of the legal system regarding foreclosure. In some states it can take as much as a year or two to get the customer out of the house if they stop paying on their mortgage.
Nobody knows for certain the answer to your question. The matter of ‘what is a mortgage’ has never been tried in court - at least not in our industry. Moving from RTO to RC is wise - both for you (less likely to be classified as a ‘mortgage’) and for the renter (more flexibility in what home they own).Good luck,-jl-