Posted by John Merchant on July 24, 2003 at 09:35:13:
You should get a look at his contract to see its exact language. I’ve had people tell me that their contracts were non-assumable, only to look and find no such language.
Even if there was due-on-sale language, a L/O would work, also he could “wrap” his contract, have you agree to pay that much so as to cover his payments, etc. You’d want to record some kind of notice of interest, but probably wouldn’t want to be too specific in your recording so as not to alarm his lender.
There is a vacant house in my neighborhood I thought it may make a good rental (the property was not for sale but I knew the owner of the property and wrote him). I wrote the owner and he said he is locked into a non-assumable contract with a private party for about 3 more years. He said he would be willing to go with a lease option arrangement. What do you think of this idea? Any ideas are welcome.
Thank-you,
Marty