Posted by Jim FL on November 07, 2002 at 01:17:34:
Lenny,
You want to send the payment directly to the lender, to insure that it is indeed paid.
Just make it a “company policy” that this is the case and incorporate it into your lease option pitch to sellers.
Disclose it upfront so there are no questions later.
Make it sound like a “Service”.
“Yes Mr. Seller, we will buy your house for the ENTIRE mortgage balance, and we will also send the payments directly to the lender to make sure they are received on time.”
Now I TRY to stick to my guns with this one.
So far I’ve only not done that on a few, and they have since sold. All mine now go to the lender direct.
However, if their is a GOOD DEAL to be had, and the only sticking point with the seller is to send them the payments, work around it.
Perhaps tell them that you can have a third party handle the payments. A loan servicing company, or escrow service, contract collection company, or even a local attorney.
But, since this is not “company policy” they will have to pay for it.
You might also send a check to the sellers, but made out to the lender.
I’m not fond of the last one, because I just don’t want the sellers involved in making the payment at all.
I’d rather be SURE the payment was sent in and on time.
But, with enough spread in the deal, you should be ready to compromise if needed.
Just be sure to set up some kind of system to protect your investment.
Good luck,
Jim FL