L/O With Upside Down Seller
I have an opportunity to L/O a house where I know my proposed rent is less than his debt service, taxes, insurance... Also, since values have gone down, he has little equity. Our negotiated price is fair with little option money. I believe I can find a T/B willing to $5-10K option money to me, above mkt rent, and some appreciation. My fear is if the seller loses his house, am I obligated to repay the T/B his option money?... What should I be concerned with?
If you are making the payment, why would the Seller lose the house? If there is little equity (and the deal still makes sense), go for the Deed instead.
_________________
"A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 10/16/2006 ]
I’m sure you already have this info… but just in case, here it is again.
From BBB web site…
Type of Entity: Sole Proprietorship
Principal : Owner/Manager
Customer Contact: Robert Ryn Manager
Phone: (702) 435-9813
From company web site…
Corporate Office
2654 West Horizon Ridge Parkway
Bldg 5-141
Henderson, NV 89052
702.435.9873 phone
702.451.5405 fax
I haven’t used them. But I would probably start by writing a letter and filing a complaint with the BBB.
And I don’t know why the CC company won’t let you block the monthly charge. I’ve done it before, but they would only let me do 3 months. Anything over 3 months required canceling the card and having them re-issue it with a new number – which is what I ended up doing.
Good luck with this. And let us know how it turns out.
yea they dont work too good...
Latest threat from Tenant Stream I just received in my email:
-----------------
We are awaiting the response from you or your attorney as to settling your account.
Since the dispute has already gone through Merchant Services, we have incurred a $20.00 fee on each chargeback. We request that you make the check in the total amount of $490.00 which includes both charges ($225) + ($225) + $40 (chargeback fees).
Please make your check payable to The 22 Group in the amount of $490.00 to:
Tenant Stream,
c/o The 22 Group
2654 W. Horizon Ridge Prkwy.
Suite B-5-141
Henderson, NV 89052
If you do not wish to settle your account, please let us know immediately so we can proceed by legal means. Please note that this can have a negative effect on your credit history.
-----------------
Again they threaten me, this time not only with a lawsuit, but also threaten to do damage to my credit.
I would like to obtain some sworn affidavits from others who have had similar problems with Tenant Stream (charging your credit card after you canceled especially). Please contact me at baycohouses at yahoo. com if you would be so inclined.
Anyone else who is thinking about signing up with these people... buyer beware.
Florida is the most aggressive state in the country against this type of behavior. After all, they put William J. McCorkle in maximum security prison for 20 years with no chance of parole for not giving refunds on his real estate courses. Reporting them to your Attorney General might keep them occupied.
[addsig]