Hi all,
I have a tenant who is in a lease with option to buy contract on this property. He is ready to buy. If the bank will not appraise the property for the contracted amount, can the difference be supplemented by the owner financing? Has anyone done something like this? Thanks.
Of course you can offer seller financing to your tenant-buyer. And, yes, I have done this as have many others, I’m sure.
Like AJ said yes, either that or one or both of the parties would have to make some concessions. I have to ask, how did you get in this position in the first place? Herbster
You can owner finance the difference. Make sure that at
the very least, the amount that the tenant buyer will be
paying will payoff your underlying mortgage, if any…
If it doesn’t payoff the underlying mortgage, then someone
will need to come to closing to cover the difference.
However if it does cover everything, and the property
doesn’t appraise for what you have it sold for, and the
tenant/buyer will still buy at the agreed upon price, owner
finance him that difference by a 2nd mortgage…
The few times that my lease/option properties didn’t
appraise for what we had it sold for, we just sell it to
the tenant/buyer at the current appraisal price… It’s just
fair business.
HTH