Posted by Jonathan Rexford on February 18, 2002 at 15:33:41:
Paul,
You asked to insure what is there best interest. You are in there living room to SOLVE THEIR problem. Now as far as for them getting a mortgage to purchase there next home. Their are two schools of thought. When you do the closing, you prepare a closing statement and the deed gets transfeered. Its true a sale did happen. If they want to wait to get a mortgage you will be making the payments on there loan. Send them a copy of the payments that YOU made. Now if you are working with a mortgage broker on a regular basis take the sellers there to get there mortgage. Heck do it before the deal is done. They may treat it as a rental for them which it will only count at 25% of there debt. But I have rarely had this come up. Because some of the people that I have done deals with could not qualify for a mortgage for at least 12 months or so. As a matter fact I am improving there credit score. Please do not fall in a trap in doing false Agreement for Deeds or Lease Option agreements. For the seller to qualify for a loan. I hope this helps
Jonathan Rexford