Re: Lease Option (Lender Objections) - Posted by Jim IL
Posted by Jim IL on January 31, 2001 at 19:07:51:
This issue has been talked about quite a bit here.
Frankly, this is not a major concern of mine, and I do quite a few L/O’s.
IF a lender has a problem with title seasoning, or lack thereof, then find another lender.
I have only had this issue arrise once, and due to the GREAT terms my buyer was getting, we decided to go ahead and use this lender.
I just had my lawyer draw up new agreements.
He drew up an agreement between my seller and my buyer, and inlcuded in it that the seller was to pay me a “Fee” for my profit.
The “Fee” was listed on the HUD-1 statement, and just called a “Fee to J. Mitchell”.
Since we used a title company that my lawyer worked with often, he was able to get it all done.
In fact, on this deal, my seller was out of state, and to save him airfare, we had him give me a POA to sign all the docs for him.
My lawyer then just fed-exed the final signed copies and check to my seller.
My buyer walked away owning the home, and I left closing with my check in hand.
If this issue arrises, make some calls to other lenders, and/or some local RE attorney to see if they can handle it for you.
And, since then, I have begun to record performance mortgages and memo’s on my deals so that I am in the chain of title.
I certainly would not stop doing good deals because of one “possible scenario”.
Remember, we are doing “Creative Real Estate”, therefore we need to be creative to get things done.
Think outside the box!
I love it when people say, “You can’t do this!”, and then proving them wrong, and getting paid at the same time.
This is my kinda game.