Deal Or No Deal?
I am currently trying to sell a house that I have which is being rented and yesterday I received an offer. The potential purchasers are qualified for $599,000 and the house is listed for $595,000. Their lender will only qualify them for 75% and they are asking for a 25% seller held mortgage at current rate for 3 years and then they would refi. I am waiting on their credit scores to determine if they have poor credit and will ask why they cannot qualify for 100%.
If I happen to go ahead and hold the second 25% for 3 years max, do I have the option of foreclosing if they default? The house is located in Virginia.
Any advice would be greatly appreciated.
To answer your question, yes you have the option of foreclosing, but that means you will need to also pay off the balance of the first position in order to take control of the property.
depending on your state laws ,want a better position sell the house lease the land for three years.