I have a potential serious buyer, but they may have trouble getting out of their current lease. They are willing to lose any deposits they paid to their landlord, and have already submitted an application for my house along with a check to hold the property.
However, their landlord wants to keep them and even reduced their rent by $200 per month. They still want to lease option from us, but are nervous about any legal action taken by their landlord.
aiya,
First, do you really want to put someone in your house that is willing to obviously walk on their obligations?
I’d say give them their check back and move on. Unless the applicants can come to agreement with their current landlord (and they need some sort of release in writing), they’re on the hook for the remainder of the lease.
Even if they decide to walk, their landlord can easily get a judgment against them which would then hamper their ability to buy your place. I don’t think you want to put these “sudden loss of memory” folks in your place.
I have a half baked philosophy about any real estate deal I do if it starts out with a problem it is only going worse. Do you know what this has never proven me wrong yet.
I know that a lot of new investors ask questions then do not pay heed to some of us old guys in the business, here is what I am going to advise, find a new buyer or go to their landlord and see if you can get them out of the lease by explaining the situation. I will bend over backwards for my buyers but if I see the slightest bit of trouble or a problem that cannot be resolved then I will pass on these buyers and find new ones.
Thanks for your advice TRandle & $Cash$. I agree with you and did let them go. In the end, they didn’t have any money to put down on the home. Amazing.
