we recently bought a house on foreclosure and although we got a really really good deal on it the stipulation was that we could not buy it contigent on whethter we sold our current home. So, now we have 3 loans, our current house mortgage our new house mortgage, and the loan for the down payment on the new house (which will be pd off as soon as we sell our current house.) our closing date is March 20th. My question is as follows...we have someone who is interested in the house and seems to have good moral character but is going thru a divorce (they have no children) she agrees to pay rent for as long as she gets her divorce finalized not only will she pay our currnt mo. mortgage payment she will pay the princ. and interest of the loan for the down pyment for the new house. we are nervous about this position but are also afraid that if we don't go with this option we may be looking at having double house payments until we find someone else to buy the house. Has anyone done this be-4?
2007-02-18 08:59:56 · 4 answers · asked by angel f 1 in Business & Finance ➔ Renting & Real Estate
ive not done it before....but i would suggest you get some legal advice and make sure everything that you agree upon is in writing.....
it makes sense to get the extra money while you are waiting to sell.....
2007-02-18 09:03:58 · answer #1 · answered by askaway 6 · 0⤊ 0⤋
Let me tell you from experience. Everyone has good characters till pay day. They don't pay and promises are broken often. Run a credit check, if the person has a bad credit rating -- run away. Sell the house quickly or face double mortgages. Get it listed. Or get away from the deal if you can if you cannot afford double mortgages.
If you cannot hold a foreclosure investment for 1-2 years because your monthly income cannot support double mortgages -- do NOT do it. Learn more about real estate foreclosures below.
2007-02-18 18:41:48 · answer #2 · answered by John Rosa 3 · 0⤊ 0⤋
What are the chances this person will reconcile with her spouse? I would make sure your insurance and mortgage companies allow you to rent the property out, seek legal advice , do credit checks and get everything in writing including the time frame in which the person has to outright buy the house after their divorce is settled. Keep excellent records. Best of luck to you.
2007-02-18 17:16:28 · answer #3 · answered by pammiepoo_1999 2 · 0⤊ 0⤋
Your gut instinct is telling you to be careful here. A tenant, once living there and not paying rent is not that easy to get rid of. You have to go through eviction notices, and if they file for hardship, you have to let them live there until they find another place.
Make sure you get proof of income from this person and put everything in writing.
Consider offering her a lease-purchase contract. You can get rid of an owner who isn't making their mortgage payments a LOT easier than a tenant.
2007-02-18 17:11:39 · answer #4 · answered by flywho 5 · 0⤊ 0⤋