Real Estate Investing Forums

Real Estate Investing => Financing, Hard Money Lenders, Private Money => Topic started by: -Ron- on July 17, 2007, 12:19:49 pm

Title: ****How can I Refinance a Lease Option ???
Post by: -Ron- on July 17, 2007, 12:19:49 pm
Good day and thanks for taking the time,

I have come across this problem with this investment property i have.

I had signed a lease option agreement with the current resident of the single family house and he has been living there for about 2 years now. He now would like to buy his house back.

I want to Refinance the property i own now under the current resident's name and remove myself from any legal obligations. How would i be able to accomplish that???

Title: Re: ****How can I Refinance a Lease Option ???
Post by: Rich_in_CT on July 17, 2007, 12:21:46 pm
It wouldn't be a refi since he never owned it, it would be a straight purchase.  Have him contact a regular mortgage broker and start the process.
Title: Re: ****How can I Refinance a Lease Option ???
Post by: -Ron- on July 17, 2007, 01:11:46 pm
Rich, thanks for the reply.

I have had someone tell me that i can deed over the propperty to him, through a quit claim deed, and at that point, his name is on the deed and we could Refinance under his name.  what do you think ???
Title: Re: ****How can I Refinance a Lease Option ???
Post by: Rich_in_CT on July 17, 2007, 01:17:46 pm
Rich, thanks for the reply.

I have had someone tell me that i can deed over the propperty to him, through a quit claim deed, and at that point, his name is on the deed and we could Refinance under his name.  what do you think ???
What happens if he can't get it financed?  He now has it deeded to him and you are stuck with the mortgage in your name.  Also, I think if he stopped paying you'd need to forclose rather than evict if that were to happen.  Also, I don't see what benefit that would give him or you over just doing a straight purchase. 
Title: Re: ****How can I Refinance a Lease Option ???
Post by: Mdhaas on July 17, 2007, 01:18:44 pm
If I am reading this properly you could do a land contract or lease option refinance depending on your State.  It works just like a regular refinance with the primary difference being you would provide the payoff as if you were their current lender.

The loan options will be based off of their parameters. (Credit, Income, etc.)

In order to complete this type of scenario they will need:


 You would need to provide the official "pay-off"