Posted by Ernest Tew on February 10, 2001 at 06:32:11:
The simplest way to get rid of the home, which no doubt has a large loan against it, would be for your friend to find another buyer who could put up at least $1,000 for a down payment. If the buyer can qualify with the lender, arrange for them to take it over.
If that isn’t feasible, it could be net leased with an option to buy. With the proper wording, it would essentially be a sale with the buyer assuming the payments.
Leasing the home could be a violation of the loan agreement. However, in practice, the lender just wants to get the agreed monthly payments and as long as they are made as agreed, the chances are that nothing would happen. In the unlikely event the lender calls the loan, either your friend or the buyer would need to be prepared to obtain financing elsewhere to pay off the current loan.
If you need the forms, please contact me by e-mail.