Posted by John on April 06, 2005 at 05:35:53:
You can do a cash out refi and it will not effect your tennent buyer. Title seasoning might be an issue depending how long you have owned the property. You might have a prepayment penalty so set option accordingly
Taking cash out while tenant has option 2 buy - Posted by able learner
Posted by able learner on April 01, 2005 at 08:05:49:
This should be a fairly common problem among landlords who own properties subject 2 the original seller’s mortgage. My company owns a house and the mortgage is still owned by the person who sold it to me (My company owns it subject to the existing loan). The house is currently empty adn I am trying to rent it out to a tentant buyer (lease purchase.
I want to pull the equity out of the property while the tenant buyer has an option to buy. The mortgage broker likely require me personally to be the new owner in order to get the loan. Will this violate the option agreement with the tenant buyer? Or can all this be solved quickly and easily at the final sale to the tenant buyer. It is fully my intention to sell the property to the tenant in the end.
Or should I just rent the property?
Able Learner
Re: Taking cash out while tenant has option 2 buy - Posted by Dan Fortney
Posted by Dan Fortney on April 29, 2005 at 20:17:18:
If your tenant/buyer has recorded the option, you may have a problem doing anything as the option may cloud the title. A possible solution is to write into your l/o that the tenant/buyer is not allowed to record the option otherwise, the option is terminated.