Re: How do I renegotiate this land contract? - Posted by JohnBoy
Posted by JohnBoy on April 15, 2000 at 22:38:51:
The real question here is how savvy of an owner Oscar Owner is. According to Betty Buyer, Oscar Owner doesn’t want the property back. Of course he doesn’t want it back! Betty Buyer is has been making payments on time, why would he want to take it back??? I’ll bet a dollar to a donut that if Betty Buyer wasn’t making the payments then Oscar Buyer would want it back in a heart beat to sell to another buyer with $4k down and risk how they make the payments. As long as Betty Buyer is paying on time, Oscar Buyer is sitting on a sweet deal! He has no reason to negotiate on anything! Once the balloon comes due, Betty Buyer either gets a new loan or Oscar Buyer steps in to suddenly show an interest in wanting his property back!
Don’t be fooled by what Betty Buyer says the owner is or isn’t interested in. It sounds like Betty Buyer has had it with this property and just wants out! She has probably tried to get out of the contract with Oscar Buyer, but since she’s been paying on time every month he’s not going to just turn into Mr. Nice Guy and let her walk away that easy! After all, he’s collecting payments on time every month and he’s obviously sold the property for an over inflated price. Why should he just roll over at this point?
The contract has a balloon due in 3 years from now. Enter into a lease option with Betty Buyer for the balance of the balloon payment due in 3 years. This gives you 3 years to make money on the deal and get the property sold.
Since Betty Buyer is so fed up with this liability on her back and tired of making payments on a vacant property because she’s tired of dealing with dead beat renters you might even be able to get the deal with her absorbing part of the contract payment!
Miss Betty Buyer, I understand your frustrations and all with this property. I’d really love to help you out and all, but because of the circumstances and all with where this property is located, this just doesn’t pencil out as an affordable and worth wild deal for me to get involved with.
However! Since your already maintaining the payments every month and are keeping current with them, maybe there is something we can work out? Your paying $227.47 per month now. If was willing to agree to lease the property from you for $127.47 per month from now until your balloon payment comes due and you were to give me an option to buy the property for the amount of the balloon payment due, would you be able to continue to swing paying out at least a $100 a month towards this while I take over everything and pick up the difference until I get this thing resold???
You never know until you ask! It sounds like you got a motivated don’t wanter here. Work on a deal with her and forget the old man owner Mr. Oscar Owner. You can meet and talk with him to see what his motivation is, but it sounds like he’s in full control of this deal right now since Betty Buyer is keeping up on the payments. Until that changes, Oscar Buyer has no reason to negotiate anything!
Just my thoughts on this one.