Need Help With This Deal
I bought a house for redo at the sheriff's sale a couple of weeks back, have put down my 10%, confirmation is set for this Friday. This home had renters in it, and they say they are interested in buying it. Only problem is, I cannot get a straight answer on them about their financing. They say they are waiting on the lender to get back with them, but I get a feeling they are just trying to stay in the house as long as they can. They do, however, always call me when they say they will to give me any updates on it. If they do indeed buy the house, it would be a great deal because I won't have to do any work to it.
Since it is so close to the end of the month, the renters have mentioned leasing the property from me for the month of July until their financing gets approved, and plan on closing the sale then. I have an appointment with the people tomorrow evening to talk about selling, renting, etc. What should I do to protect myself in the event that they don't get financing or decide they don't want the house anymore? Should I go ahead and write up a contract on the house subject to their financing? Have them sign some kind of one month lease on the place, etc?
It would be best to have them sign a written lease. Oral leases are binding if less than one year, but how do you prove what the terms were if there is a problem.
If they can't get financing what about a lease option or owner financing.
We would only be interested in leasing for one month because we want to either sell it to the renters or fix it up an sell it... We want a faster turn around on our money than a lease option or owner financing can provide.
sounds like a written note of intent over their signature that they will lease the property for the one month period unless other written arrangements made by a date of your choosing. this could be the financing obtained or not date but a decision date is important. they will be in effect saying they will vacate at month end or on a date which would be binding unless another agreement is made. act now because their motivation is to occupy your property and foot shuffling is a way of life for some.