What Happens When The Lease Ends?
At the end of a lease if the buyer has not exercised the option what action would you take? Do you send them a notice/ evict them? What if they just send the 13th payment (1 yr lease); do you/ dont cash the check?
What do you want to do? Its your house so its up to you. Was this a lease option or a regular lease?
If it was a lease option, you have the right to keep the option money. If they are trying to get financing, I would still give it to them at closing if they close within another month. But you could ask for another deposit to extend that. If they dont want to buy, you can sign a new lease, go month to month, or ask them to leave.
If it is a lease, you could sign a new lease, go month to month, or ask them to leave. It is all up to you and you should consider the type of tennant they were - did they pay on time and keep the place clean? The ball is in your court.
The property has a negative cash flow; I would rather get another tenant/ LO buyer (which is a pain in itself).
I send them a letter asking if they would want to rent at the new price. I was wondering what happens if they dont respond but send the same old rent check?
Check on the rental laws governing you, in your state.
In Georgia you need to give them a sixty-day notice on a month-to-month lease. Tenant needs to give a 30-day notice. So you had better get them noticed. You need to give them notice in writing to cover your rear.
Sounds great, but I think you are out of luck...
Use a purchase/option to include $200 of the monthly rents to be applied toward tenants down payment and or closing costs. I usually put in my contracts that the option cannot be assigned. It is only good for the tenant named in the contract.
World Savings does assumable loans in my area(Adjsutable Rate pick a pay loan program). not sure if they are licensed in your town.
The answer to your question is lender specific, and for each lender, loan specific.
You have to ask each lender you talk to which of their loan products could be assumed by your buyer.
I talked to a guy from Wells Fargo on Saturday. He claims the only assumable mortgages being offered are FHA and VA loans.
estateXchange, thank you for your input of comments as well. I definitely will be sending you my information for you to get in touch with me. This is what I have been looking for-someone creative to help with the deal.
texasgreg,
I sent you a pm, let me know if you received it. Thanks!
texasgreg,
Are you saying you can provide private lending?
qbert1
If the boss does not need the cash now, he could deed the property to you with seller financing (I assume he already has a lot of trust in you). He or you would have to pay the closing costs, though, to get the title transferred in your name. You can then work on your credit over the next 6 months and do a refinance since you have title in your name.
If you have not owned a property in 3 years (would be considered a first time home buyer), then the best thing is to get you a MyCommunity loan. You would have to get approved through Fannie Mae (which I as a licensed mortgage broker can do). This is a great loan that will get you up to 100% financing (I have just gotten a loan done with a 586 FICO). The only downside is that you have to pay PMI but the rate would be great (my 586 client got 6.875%). With your deal, you can structure it so that you will be at 80% and not need PMI (Private Mortgage Insurance). This would need to be done as a purchase, though, because it is for first time home buyers only.
With this loan, you will have to go full doc but they will allow up to 60% DTI (Debt to Income ratio). If you do not have paystubs and tax returns, this can be done with a VOE (Verification of Employment) but it has to be fully filled out and they will call your boss to verify the income is correct. Here are some of the benefits of the MyCommunity loan:
-100% with a 580
-6% seller concessions
-No tradeline requirements
-DTI limited to conforming (60%)
-no set asset requirements (needs enough to get Fannie Mae approved)[ Edited by JohnLocke on Date 05/11/2007 ]
I like the idea estateXchange originally had. Just do it as a Contract for Deed or Land Contract, and treat it as a REFI. It may be the easiest way to go.
Then, if you want, when you get your credit score up, you can always REFI again to get your interest rates down.
I spoke to estate exchange earlier today and he was able to give me great advice and information on a couple of ways to do this. I appreciate everybody that has given input on the best way to get this done. This is the reason why I joined this club! Everyone is extremely helpful. I welcome any and all comments on this matter. Thanks everyone. Lets keep helping each other out!!!
thanks John!
the property is leftover from a house i owned that burned down on it....which was itself a leftover from Katrina damage. i made a boatload on insurance - this is just gravy.
$5K for a waterfront lot? LOL, maybe in Nicaragua.
so wait...they are going to tax me on not only the interest i get, but also the prinicpal?? that makes it even less worth it.
arent there some contracts for deed that are invisible, such that no record exists?