Posted by Scott on August 22, 2003 at 07:56:45:
I agree that the husband is the key. I’m sure he is going to need cashed out to get off the deed. I think I will offer his half of equity minus paperwork, closing, and his half of commission. Sound fair?
I think the wife will be very open to a deal, she grew up in the house and her dying mother asked her to take care of the house, but her father lost it. There are emotions involved ie: she is a motivated buyer
Is there way that I could still just rent to her, but get the deed and use her equity as option consideration? This way my cashflow is greater, the salesprice of my home is reduced the same. If she defaults, the LTV would not matter, she will be evicted, not foreclosed on. Am I being greedy?
Another issue would be the fact that without a lease on the property, improving my D/I ratio, I don’t think I could qualify for another mortgage. And I’m sure the bank wouldn’t be happy if I showed them a L/C. They also only use 75% of the lease amout as income for qualifying.
Help me out here Brent or someone, I know you pros see a simple answer here…It’s kind of like the forrest and trees type thing, I can’t see it yet.