L/O expiring, T/Ber can't get loan

Hello All,
I’ve got T/Bers that are great. They pay on time every month, keep the house and yard neat BUT can’t excercise their option. They have been in the house for two years. Their bad credit is three years old now, mostly hospital bills but some other bills now and again (some new). They both work and live pay check to pay check. They have tried two banks here in town and no loan.
I could tell them to move and resell the house for more money but I won’t unless I have no other choice.
Can someone give me some ideas of what you all have done?
I’ve thought about giving them another year with more option money and higher rent. I still owe the bank on this house and live in Texas which means NO contract for deed.
Thanks to all,

If you could run them by other mortgage brokers without having their credit pulled again, that might be worth a shot. Perhaps one of the banks who has a copy of their report would be willing to give them a copy.

It sounds like you’re leaning against just selling them the property owner-financed? If so, your renewal idea sounds fine to me. I normally don’t charge additional option fees and will make my decisions on the monthly based on the market at the time. There have been times where I actually lowered the payment on renewals so I could feel confident the TBers would stay.

To me, having a quality resident is important because I find it’s rare to have one that pays on time and takes care of the place.

Let us know what you decide and hopefully, you’ll receive some other suggestions.


If these guys are as good as you say, why wouldn’t you want to just sign them up again for another year?

Use it to your advantage with them. Tell them that even though they still can’t get financed, you are willing to hang in there with them as long as “the company will let you”.

If your market is as tough as mine is right now in terms of finding suitable T/Bs, looks like getting these folks to stay might be a good thing.

Another year of dependable cash flow, responsible tenants, equity build up in your property, another year of depreciation from this property to offset income from other areas, gee, worse things COULD happen you know. LOL



I agree with Tim and William. A good t/ber (defined as pay’s on time, or pays period…LOL… and takes care of the property) in this market environment is too precious a commodity to try and replace.

What if you can’t get more money from the next person or even if you do what if they don’t pay on time?

That’s too much risk for not enough reward, in my opinion.