Peter Conti/David Finkel - Lease Option Question - Posted by PJ

Real Estate Investing
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Posted by PJ on January 23, 2004 at 08:57:19:

Well…looks like all of you are right.

I found an article by david finkel in the how-to section… it goes into how to ‘protect yourself in lease options’

Thanks!

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Peter Conti/David Finkel - Lease Option Question - Posted by PJ

Posted by PJ on January 21, 2004 at 13:04:52:

Ok, lets say I have a seller willing to lease me their home for $2,000/month.

I find a T-B who will pay me $2,500/month.

Sounds good so far … but…

What IF:

Owner of home stops paying mortgage payments and eventually the home is foreclosed ??

The T-Bers will be pis$$d off and after me like wild dogs.

Can the TBers sue me?

What can I do to prevent this delimma from happening?

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Re: Peter Conti/David Finkel - Lease Option Ques - Posted by Steve CO

Posted by Steve CO on January 28, 2004 at 03:59:55:

PJ I recomend two ways: 1> Have the owner sign an authorization release form, and my personal favorite:
2>Is to write the check out to your landlords mortgage company, and yes, send it to your landlord, and he can forward it to his mortgage co. You develop trust in this manner.
Item #1 works nice when you carry a 2nd note as well. I was burned several years back when loans were assumable, and the lady I sold my invest. prop to defaulted on the first but continued to pay my second! I had no idea that foreclosure was coming.

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Re: Peter Conti/David Finkel - Lease Option Q - Posted by Jeff TX

Posted by Jeff TX on January 22, 2004 at 22:46:34:

PJ,

  1. Get the seller’s Loan number and SS#. Call every month or two to make sure the payments are being made.

  2. Get the seller’s login info to check it on the web.

  3. Set up a bank account, utilize automatic online bill pay. Have bank send seller copies of the account statement.

If payments aren’t being made, make them yourself, and then go back to seller and negotiate sub-2. Get well written letter from an attorney if necessary.

BTW: I have been reading Conti and Finkel’s books, and I really like their material.

Good Luck

Jeff TX

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Re: Peter Conti/David Finkel - L/O Question - Posted by Drew-TX

Posted by Drew-TX on January 21, 2004 at 13:39:00:

You can do a couple of things:

  1. Write the lender as the “manager” of the property and ask for written notice if the owner fails to make any mortgage payment.

  2. Tell the owner you’ll pay the lender directly, then send the owner the difference each month. Send the owner a “cc:” of your payment to the lender each month, so he knows YOU’re paying.

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Re: Peter Conti/David Finkel - Lease Option Q - Posted by John

Posted by John on January 23, 2004 at 06:20:12:

you must get a release from seller authorizing you to access their info at the bank…it’s vital.