Re: Motivated sellers - Posted by Bud Branstetter
Posted by Bud Branstetter on May 13, 2000 at 12:14:09:
It appears you are referring to a sandwich lease. If this is the case then you try to get them to make payments for as long as possible. Thirty days is normal because interest is paid in arrears and otherwise you would be paying for the time they were occupying the place. You try to get them to make that next payment to give you time to put in a quality TB that can solve their problem and eventually refi.
With sandwich leases the seller may be less motivated because there is likely less equity to be giving up. In many of these cases you try to get the deed rather than a lease and take over the existing mortgage subject to. If there is a decision I would base it on the ease with which I felt the house could be L/O or resold on a wrap. The higher the price is above the norm the more time I would want to find a T/B. A house that is like 80% of the area is easy to find someone and you would feel more comfortable making a payment sooner.