If the transaction has "hair", the feds care and financial crimes can be prosecuted for up to 10 years after the transaction. 

In my 9 to 5 job where I work with the Attorney General's office here in Michigan daily and someone who helped prosecute a low-income housing developer in California back in 2010 (which was when I got into real estate investing), knew back in December when the Attorney General in Indiana got involved with Ocean Pointe, this was all bad bad BAD news and would only get worse, which it did. 

Just refer him to a HUD counselor for free and move on.These rent backs from the former owner the Feds have been going after investors and prosecuting for stuff like that.

Every investor has a different tolerance level for prosecutions. 

I know I was a HML as big as these boys ... you can forgetta bought it. the cost of prosecuting a PG is way too much to be relevant in one off HMLs. it really depends what state they are lending in..

I see you always posting these long winded diatribes, but are you able to point to specific instances of a mobile home park operator being prosecuted for said infractions?

Hello:It has been a while since I prosecuted a claim in BK court but I do recall that we always petitioned to have the secured asset excluded from the BK estate.  

The DA will prosecute faster than a politician goes after campaign contributions. 

@Michaela G makes the point everyone forgets: the federal govt. is not prosecuting right now but reserves the right to.

The IRS is sometimes *very* slow to move; but once they move it's like an avalanche and you don't want to be on the receiving end of their collections arm / prosecution arm.