I am new at being an Invester I have taken a real estate sales course and have been a Loan officer for 5yrs. I ran into a deal were the owner has a rental property that has been hard to get good tenants in and she has filed bk13 and wants to get rid of the property. it has been vacant since august and needs a little plumbing work i had the title pulled so far so good just one years taxes in arears. i am going to pull county records to check for mortgage payment amount. what should i do other than record the lease option with the county to protect my self ? :rolleyes
If possible, get a loan authorization form signed from the owner so you can talk to the lender. The county records won’t show what is currently owed and any late fees, etc.
If you’re taking the property sub2, you go through a regular closing and get the deed, you then own the property so there is no need to record a lease-option agreement, that doesn’t come into play.
If this property is tied up in a bankruptcy, this sale will need to be approved by the bankruptcy court (trustee). You can’t simply take it over sub 2.
If the property is impossible to find good tenants for, it either has something serious wrong with it, or it is in a bad area.
What do you intend to do with it after you get it?
I’d be concerned about whether or not it is worth owning. At the very least, that is something you have to consider carefully. If it ws a very bad purchase originally, you don’t necessarily want to assume someone else’s big mistake.
If it is involved in a bankruptcy, she can’t just sell it.
If she is in bankruptcy, the original lender might be very happy to do a short sale. You’d have to get permission from the bankruptcy courts, but it’s possible that they would approve it, if the property is over-financed and no chance of gettign any equity out of it.