Lease Option

Our house burned down and we are leasing a house. We would like to lease option the house. The owner has agreed to $5000 with an option to buy.

Her mail still comes to this address and I have noticed that she has several past due statements for everything!

Is there anything I can do from my end, to ensure she is making her payments.

Thank you


That is unfortunate about your house burning down. I hope everyone is safe and in good spirits for what the future has to hold for you and your family.

I would make sure, # 1, that she knows that the mail is still going there…maybe she does not know about the past due notices.

When offering for the lease option, I would probably ask straight up: Are the mortgage payments up to date? Have any recent mortgage payments been missed? If the answer is that they are behind, they may just need to get out of the payment…possible “subject to” deal if she is behind.

You may want the lease w/option on one agreement to ensure that you have equitable interest in the property. You could record it at the courthouse…or if you do 2 separate agreements, you could record the option. This may give you more bargaining power if the lender wants to foreclose. If I was a bank, I would consider a short sale if the first owner was behind and knew that there was someoneelse with equitable interest.

Beyond those thoughts; and to answer your question, I think the best thing you can do is ask if she is behind on the mortgage payments.

Chip Hoisington.

A title search should tell if she still own the home first.