Sandra, I don’t think you have a problem for financing if the tenant has good credit. Let him go to the bank and borrow the money but I will say if you don’t want any money out of the transaction why not sign the deed over to him? And he can get a new loan for the home, what do you think?
i have “inherited” an under 40k house in the east end of newport news va and have excellent tenant who is a contractor and has fixed it up–he can qualify and has good credit and some cash-will come into more soon. basically i am willing to “give” him the house for what is owned on it and expenses of sale. problem is finding a lender who will finance the house as it will be under $35K. owner take back and land contract in the conventional sense is not a possibility as the former owner has to be paid off within 3 years from last may. i have some investing experience but seem to have a brain freeze on this. any suggestions?
I have found it extememly difficult to find anyone to do this size loans. With all the re-fi’ing going on the lenders don’t need to make these types of loans. Many have told me just that. I know a broker who is a wizard at what he does and says that he used to be able to get a dozen lenders to do these loans. Now he says they don’t even sonsider anything under $50k.
Sorry to put a damper on things but I have spent a LOT of time trying to find this type of financing. It very well may be, and I hope for your sake it is, that the problems I am having is that I am trying to make it happen in Baltimore, MD. (Goodness know that we have our own unique problems here.) A local bank may be your best bet.