lady wants me to lease option her house. She is willing to sell to me for market value – which is 250k but she owes loans on the house which means she owes bank 345k
How do you lease option house for market value
when she still owes extra money for borrowing against equity when house was worth more
When you are ready to exercise your option, she will have to bring enough money to settlement to pay off the loans, or she will have to negotiate a short sale with her lenders.
Another possiblity is that you will be in the lease option so long that she will have paid down her loan balances sufficiently that your purchase price will pay off her loans.
What if the lender wont accept short sale?
No default on loan – lenders almost never will accept short sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.
• Bankruptcy – If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy because negotiating a short sale is considered a collection activity and collection activities are prohibited in bankruptcies.
She wont bebehind on payments because I will be doing rent to own
What id debt is not paid down by time of purchase?
What happens to me and my contract to rent to own?
You have a lease option which you can walk away from if the seller can’t get the lender’s permission to sell at your option price. This is the seller’s problem to solve.
It kinda seems like a waste of time — I am lease optioning the house on maybe she can do this maybe she can do that
It kinda seems like a bad deal – when I could deal with someone who does not have alot of debt on their home
It’s an iffy deal and there are many variables to consider with
this type of transaction.
I probably wouldn’t enter into an agreement like that where the
seller says they will do what you stated!
The way I would go about it is have the seller come out of pocket
NOW! and then you can take over the payments whichever way
you choose (sub-2, lease/purchase)
If she can’t do it NOW, what makes her think she can do it a few
years down?
Only way I would do it is if you can get her to somehow pay down the difference on the mortgage. Then either take it over sub2, or with a lease option, etc.
This is usually a long shot as if they had the money they wouldn’t be calling, but sometimes they can make it happen by borrowing from someone, credit card loans, etc.
They idea is that they may be able to make payments on a loan if they no longer have the mortgage payment.
If I can’t get this to happen (or a short sale) I would walk.
Run Bobbymo Run!