A Triple Agreement in MHPs

[John Boutros]

Hi MHP Investors,

Curious if you have any experience with the following scenario: 

We are looking at acquiring an MHP with seller financing. The seller of the park (owner 2) has a sellers note with the prior owner of the park (owner 1). There is some dispute with the current seller and previous owner of the park over back taxes on the park. 

In the effort of making this deal happen, has anyone gone into agreement with two other parties, to come to terms and create an agreement that can please both parties to make the deal happen? Essentially creating a new note with the seller (owner 2) and the original owner (owner 1).

Its a unique scenario my partner and I haven't encountered before. Curious to any thoughts!

Thanks,

John

[Mario Dattilo]

Not the exact scenario but I have had to work deals with multiple interest holders to put a deal together. Do what you have to and just be sure to protect yourself from any downside risk in the process. Good luck with it. 

[Will Stewart]

Hi John

It’s definitely doable. Just make sure you understand if there are tax liens and if so, how those get cleared (aka make sure attorney reviews everything). Situations like these can get you a property others might run away from. Let me know if you want to bounce any ideas off me 

[Don Konipol]

Quote from @John Boutros:

Hi MHP Investors,

Curious if you have any experience with the following scenario: 

We are looking at acquiring an MHP with seller financing. The seller of the park (owner 2) has a sellers note with the prior owner of the park (owner 1). There is some dispute with the current seller and previous owner of the park over back taxes on the park. 

In the effort of making this deal happen, has anyone gone into agreement with two other parties, to come to terms and create an agreement that can please both parties to make the deal happen? Essentially creating a new note with the seller (owner 2) and the original owner (owner 1).

Its a unique scenario my partner and I haven't encountered before. Curious to any thoughts!

Thanks,

John

1. Does the mortgage or deed of trust associated with the seller financed note contain a due on sale clause?
2. Is the dispute over property taxes concerning property taxes that have been paid or are property taxes still outstanding? 
3. Will the note holder confirm the principal note balance?
4. Are payments on the note current?

The answers to these questions will be a determining factor in deciding what needs to be accomplished to make a purchase viable via the owner financing route.

[John Boutros]

Quote from @Mario Dattilo:

Not the exact scenario but I have had to work deals with multiple interest holders to put a deal together. Do what you have to and just be sure to protect yourself from any downside risk in the process. Good luck with it. 

 Thanks Mario, appreciate the 2 cents here. 

[John Boutros]

Quote from @Will Stewart:

Hi John

It’s definitely doable. Just make sure you understand if there are tax liens and if so, how those get cleared (aka make sure attorney reviews everything). Situations like these can get you a property others might run away from. Let me know if you want to bounce any ideas off me 

 Hey Will, good to connect again. Thanks for your two cents. Good point, its a rock solid deal in terms of numbers, with clear upside, if can figure out a way to make it work would be ideal between two other parties.