Jason,
In this situation, I would prefer to get the deed instead of doing a lease option. Also, I would want to know when does the lease expire with the tenants who are in the house. If the lease expires in a long time, that could be a problem, unless you can increase the rent to cover the mtg payment.
After you get the deed, you can sell the property on a wrap and get a nice downpayment, which should cover the backpayments.
Hope this helps!
Tarun
Lease/Option behind on payments - Posted by Jason Kibbee
Posted by Jason Kibbee on March 09, 2000 at 16:45:55:
Is this realistic?
Home is worth $125,000 (On Golf Course)
Loan Bal. $100,000
Payment $1,095/month
$3,000 behind on payments.
Homeowner is now living out of state & can’t handle pmt.
**There’s a renter paying them $600/month right now.
O.K., if I lease/option this house from her, can I collect say $7-10,000 down, then pay the back payments??? Or do I have to make up the back payments out of my pocket(which I can), then put a tenant/buyer and get a down pmt.???
Re: Lease/Option behind on payments - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 09, 2000 at 20:58:24:
Jason,
I agree with Tarun: a lease option wouldn’t be my first choice on this one. I’d try to take title subject-to and make up the arrears at once. Then you have plenty of options to sell: wrap, retail buyer with conventional financing, lease/option, note sale, etc.
Keep in mind that since the homeowner is already three payments behind, depending on your state and the lender, it may be getting very close to foreclosure. You may not have time to wait until you find a buyer to use their downpayment; you’ll probably have to use your own funds or another source of cash to cure the default right away, then get it back, plus more, when you get a buyer.
I’d also want to see that tenant’s lease. How come the rent is so low? Would market rents support $1100-$1200 rent per month?