I short sale my second, I did a lease option, should I change the terms?

Hi everyone:

I did a lease option with my tenant to pay me $ 360 K at the end of 7 years. With the agreement of paying 10 K first year and 25 K second year. This was my investment when I purchased the house. Now, I short sale my second mortgage. I have still the first for 304 K paying I/O. My question is as follow. In my agreement with the tenant we established he will pay both mortages to me, he will be in charge of the house, maint, repairs, etc. Now, the second is gone. Do you think I should let him know about it ?, Second, he has not yet honored the first part of the agreement of paying the first 10 K… I feel I shouldn’t give a break of reducing the payment. I am the one taking the hit in my credit of a settlement… Please advise … I will so much appreciate it.

Best Regards to all,


Your underlying financing is of no importance to the buyer. The buyer signed an agreement that you need to enforce. Keep your terms in force.