Sandwich lease option

Hello I have a question. If I find a seller and arrange a lease option with him…then I find a tenant/buyer and lease option the property to them…how do I ensure that the seller continues to pay his mortgage and doesn’t default? And how do I ensure he can deliver clean title when the tenant/buyer exercises the option?

Obviously this is one of the main reasons why a Subject 2 is much preferred.

As a condition of your lease with the seller, you could demand that he give you the access to his account info online. This way you could check that everything is always current.

You you could have the seller sign a deed to you, placed in a reputable escrow, and conditioned to be released and recorded only on evidence of default.

There are still areas you are not protected from, like liens on the seller. A lot of things can go wrong. I say try again for the Subject 2, but if you can’t get it, lease optioning is an easy, low cost way for beginners to get into REI.