Have You Ever Leased/optioned Back To A Seller?
I was hoping to get advice on the following deal (also posted in Short Sale forum):
I have willing seller who is in a decent doublewide in rural NC. The property is worth between 60-80K. They owe 88K, and are in foreclosure.
There are lots of characterists that should help a short, including the property being on family land, the house bing in so-so shape, it being in a very rural area where houses sit for a while, etc.
The owners recenly got out of a health-related bankruptcy, and are now back on their feet. Mom recently started nursing for $30 and hour, and says she will have no problem making option money or payments.
We want to short the double wide to $30K, and L/O for 80K with 4K option money for 24 months.
Does anybody see anything challenging to:
1) getting doublewides shorted with 50%+ discounts?
2) leasing back to former owners?
3) the tax issues this would create for the seller?
Any advice appreciated.
I would talk directly to the trustee to determine is something can be negotiated, also talk with an attorney, there is a potential for fraud if the shift in ownership is not covered/outlined within the bankruptcy.
I am with the assumption the house was/is being declared within the bankruptcy. Or has the bankruptcy been discharged?
[addsig]