Need help on what to do next… - Posted by C.C.
Posted by C.C. on March 16, 2006 at 12:22:10:
Hi everyone… Well, we are down to our last property that we bought Sub2 a couple of years ago. We sold the first in a week and made profit. The second one was a tenant from he** and strung us along for 13 months with 3 BK filings, so we were in the whole about $10K on that one. The last one made a profit. Now we want OUT of the Sub2 business. It’s just too much stress for us right now to have someone else’s payment to deal with.
Anyway, here is the story on this one: Lease purchasers did great for a year and a half. Made full, timely payments. Then suddenly started complaining about repair issues (that they caused by putting a toilet that was too small and sawing off a pipe in the shower), they started deducting money from the rent without authorization, etc. etc… They filed BK but we were not included. Now, they pay $1000 a month even though their payment is $1194 because “they don’t feel like paying that much.” We realize they are suckering us. But due to medical issues, we cannot afford a 2nd house pmt right now and have no option it seems but to continue taking the $1000 until we get some padding in our checking acct (somehow) to boot them out and sell it.
My question is: since they have violated the lease, does that also violate the lease purchase option? We use Randy and Charlie’s forms. I think they have officially violated everything. The reason I ask is I would like to either sell the home to another investor or let them stay month to month and pay $1000 until it sells and then give them 30 days notice to get gone. Can I do that??
The house is in a great area (near Atlanta) and only 5.5 years old. It is worth about $185K at least (I am a Realtor). I think we owe $150’s. I would like to get at least $3,000 out of it and just let someone else get the deal. It needs a little paint, sprucing up, septic pumped and that’s about it. Other homes in the same small nhood are listed for $244K, $198K and $189K (smaller home and foreclosure). I don’t want to assign it, I want to sell it. I want to get the other people off the mtg and be done with it.
Any ideas on what we can do without having to continue to wait to sell it?