Upside down lease

If a house has more in mortgage than what it is worth can you lease the house for what it is worth and make owners responsible for debt or do you have to take responsibility for all of it when buying house

i would make a full price offer to the homeowner based on what they owe on the mortgage balance. then just take over subject 2 and do a lease to own or some sort of owner financing. if you’re in California like me, more likely the homeowner would have to pay the negative cashflow. if they have excellent credit, they will pay it. if they have shotty credit, it will be extremely risky since they can just walk away and stop making payments on the negative cashflow. i would strongly suggest you use a 3rd party collection servicing company to collect payments from both the homeowner and buyer if you’re going to sandwich yourself.

id would make an offer sub2 a successful loan modification and see if you can get the terms into a fixed rate and possibly ask for a principal reduction. if you cant get a principal reduction, then you’d have to structure your deal for 7-10 years to allow the market to cure itself.

Thats what I thought but everyone says no — look at my is this deal worth it ---- curiosity girl --just a couple of posts back

these people are upside down in their 4plex and I thought it might be worth it but — well just read why people say no—

They are selling the 4 plex for what is left on the mortgage which is way over value of the house

also could i just keep this for myself and buy it on lease to own at a 7 year lease option — no sandwich— but i would be paying 100,000 over its worth — what since does that make — please read my other post is this deal worth it – to understand

i read your thread and i agree with them. my post was meant for single family residences and bringing buyer’s who’ve been turned down by lenders but have 5%-10% to put up and assume the terms that would be created between seller and investor on the sandwich or double wrap.

reason why its different because i wouldnt market to just “RENTERS.” renters don’t have 5-10% and most cant afford to cover the debt service, taxes, insurance, maintenance, management and repairs. my response to you was based on future OWNERS that need a few years to fix their life and their finances. these people are willing to pay a premium price since they dont want to throw anymore money away just RENTING.