HI EVERYONE:
I did a lease option to purchase with a Tenant. We agreed to pay $ 35 K in 2 years. But he wants to pay off the mortgage in 10 years. Originally, I have two mortgages. I am trying to short sale the second. My mortgages are as follow: 304 K 1er. 56 K second. If I am sucessfull short saling the 2do. Do you think it will be wise to cancell my lease option with the Tenant who just have giving me 2 K in the whole deal?, I am desperate. Please help me.
Isacaro
No offense, but what?
Your post was not that clear.
I’ll gladly try to help, but did not really follow you enough to give answers.
Let me take a gander at your post and see if I have any of it right.
you own a house, that you lease optioned to a tenant buyer.
The tenant buyer agreed to a price of $xx? (did not get that part)
They gave you $x in upfront non-refundable option money. (don’t know how much, the numbers did not make sense to me the way you wrote them out, frankly.)
Now, this tenant buyer has approached you for seller financing, wanting you to carry the financing (play the bank), with them paying you off in ten years? Is that close?
Does the ten years mean that you will amoritize the debt for ten years, and get larger payments from them as a result?
or
Does it mean they want it amoritized for 30 years, and a balloon payment in 10 years?
Then, you have underlying financing, and want to short the second, pay it off now, and keep the first alive? during the term of your financing with the buyer?
or, am I totally wrong?
Help me help you?
Do you own the house?
There are two loans?
Balance on each?
PAyments on each?
Current?
Taxes?
Insurance?
Are the above two included in the payments?
what are the terms now with the tenant buyer for his lease option?
what numbers is he proposing for the seller financing he is requesting?
Lay that out, and we can tell you how to get it done.
Good luck, hope to hear back from you,
Jim FL
Jim: Thank you so much for taking the time to figure out this mess. I am sorry I didn’t explain myself clearly. Ok this is was is going on.
I have two mortgages. 1) 304k first lien paying interest only for 10 years. I have a second mortgage owe 56 K. A ballon note. I approached the second to short sale it. I haven’t been approved yet. I offer them 3 K to short sale it.
Around 1 year ago, I did an option to buy with one of my Tenants. We agreed he will pay me in two years $ 35 K which was my investment in the property when I bought it. He agreed to pay me 10 K first year and 25 K second year. So far, he just has giving me $ 2 K. IN the meantime, he is totally responsable to pay the complete mortgage ( both mortgages ) PITI , and take care of the property… So far is working fine. Not complain. Except the fact he is little slow on paying the first agreement on the first 10 K. Lately it seems he wants to back out of the deal. I don’t want this happend so easily without consequences.
Now, it occurred to me, Why I don’t short sale the second, get rid off of the 56 K and just keep the first alive. At this point, I haven’t been late in neither of them. I just got a call from second that they working on it. If I am sucessful to get rid off of the second, Do you think it will make sense to continue with this Lease Option?, Or should I said to the Tenant, the deal didn’t work out with the second, keep it as a secret and sell the property for 360 K as we agreed. Please help me, I need to make a decision.
Thank you Jim a lot. !! Gracias !!
Your paperwork will dictacte what you can and cannot do with the tenant buyer.
Whats the payment schedule for the $10k?
Did you mention attempting to get a discount on the second to the tenant buyer?
If so, why?
your agreement with the tenant buyer, is it that they get new financing, or that they take over existing, AFTER paying you the $35k?
Frankly, if they have not held up their end with the upfront money, depending on what your paperwork says, they most likely are in default.
This can be to your advantage, because should you get the 2nd to discount, you can then renegotiate with the existing tenant buyer for new terms…perhaps wrap it and sell on land contract, with more down now.
or
In this market, if he’s paying on time, simply extend the lease option, for more money now, or not, and just keep him at the same payment, direct to you, not the lender, and not sell it to him subject to.
I’d not do that anyway frankly, since he’s not performed as contracted so far…based on what you said here anyway.
My thoughts, hope this helps,
Jim FL
Thank you Jim:
The terms in the contract were he will pay me the 35K in two years and continuing paying the mortgage based on 360 K. He will either pay off “Cash” the 360 K in 7 years. I don’t know if he will be able to pay in full the 360 K in Cash or getting financed. Jim, do you think I could fax you the contract and we can talk more after you read it ? I will email you.
Thanks again,
Isacaro
how can you Short your OWN second mortgage when you’re current and not in default? its a performing asset for the lender and ive never heard of them taking a discount when payments are being made on time and there’s no distress.
can someone please clarify if this is possible? heck id ask my lender to short my own second while im current
I just did. It is posible… I short sale from 56 K to 3 K with deficiency judment waived. :beer