Should I Lease / Option From A Couple That Is Divorcing?
spoke to a couple that is getting a divorce. i offered to make the payments and rent it out.
Now i need to know from you all if it would be a wise/unwise decision to do a deal with divorcing couple.
how can i do the deal and cover my butt?
Verbatim
I don't have a good answer for you other than make sure if you do something to record it to protect your interest in the property.
As long as you have both signatures and are able to make payments directly to the bank instead of giving them money, why not?
when they are divorcing arent they trying to split assets etc?
I would think this would mess things up somehow
As long as whatever they do with the RE is done before any judge enters any orders, no problem.
Whatever RE rights they take into court have to be "around" and subject to any rights they've previously conveyed or sold, such as a L/O into which they've both voluntariley entered.
So sure, do it now before their lawyers start advising them to do nothing and just leave the RE for some judge to order sold, etc.
While there's nothing wrong with doing a L/O with divorcing couples, I just don't feel comfortable with this approach primarily because of potential future problems.
Getting a deed from both parties in the future is easier said than done, especially if the spouses have again married. There's also a higher probability of credit and legal issues which may attach to the property.
I'd much rather in this instance take the property "subject to", get the deed, and thereby eliminate many of the above problems.
I am in a similar situation, and I asked for the deed and got it. Both signed the deed as well as Power Of Attorney to the property, so now I an in control regardless of how much they dislike each other...GET THE DEED!!!
Prosperous investing,
td
This is not a bad idea. However, getting the agreement in writting with both signatures and notirized and filled would protect you from losses.
Verb,
In addition you may go ahead and have both of them sign one or more discloures stating that they understand that they are conveying ownership to you and keeping the existing mortgage in their name, and that you will be making the payments. As long as you have them read and autograph a disclosure (in addition to the contract) form that explains the nuts and bolts of the transaction, this will give you extra assurance that one of them wont come back on you in the future and say that they didnt understand.
Best of Success!
BAMZ
Divorce can turn into a serious mess really quick... they may even be getting along okay right now, but all it takes is one person saying the right thing to kick one of them into the I hate that &#^$&!! And I'm gonna take em for all they are worth. If I were you I would pass on this one, something else will come up!