Thanks for the suggestion. I thought of that option and it won’t
work for me. Besides, I don’t think that my stand on this is
relevant since the whole “relative” thing is a part of the picture
with her. I could possibly offer better L/O terms but how good
would they need to be to beat out the charity case of her cousin?
Right now I really need the NEGATIVES of a L/O. Folks, is it
possible that no one here can list the negatives of a L/O? Where is
the CREOnline line that I used to know?
I am trying to buy a house form a seller who almost lost it to
foreclosure. Obviously, she has a mortgage that is in arrears. She
declared a Ch. 13 bankuptcy to get out of the foreclosure. This was all
back in March, 03.
I was looking good on the deal until a cousin of the owner came up with
the idea of doing a lease purchase on the house.
The seller is going to check with her attorney this week to make sure
that she is doing the right thing. I, of course, think that she is not and
have given her some of my reasons.
I guess I would like some help as far as coming up with other reasons to
discourage the seller from doing a lease purchase with a relative.
…with the relative, with you or with Donald Trump himself unless the bankruptcy trustee approves.
Unless the chapter 13 has been dismissed, the trustee has control of the property, NOT the owner. If you enter into an agreement with the owner in bankruptcy, without consent of the trustee, the owner is in violation of federal bankruptcy law and you risk the sale being reversed by a PO’d judge, especially if there is equity.
Do a little reading here about bankruptcy. This has been discussed ad nauseum on this newsgroup the past few weeks.
I agree with GL. You shouldn’t even have to explain to a person “THE NEGATIVES OF A LEASE OPTION.” If her relative wants to lease it out with her let him do it. You can walk away and if they call bid lower than their asking price…WAY LOWER! Make sure they have your phone ####…and go find another deal happy searching. See you out there.
P.S. You can look at it this way also…WHY WOULD YOU EDUCATE A SELLER TO REI?
The mortgage is still in their name, and THEY are responsible, and how are they going to feel with that weight around their neck?
What happens if the house needs a major repair, where are they going to come up with that cash?
Now they are a landlord, and worse yet, a landlord to a family member. How are they going to feel if their cousin loses their job, and they have to kick them out of the house? Is being a landlord something they feel they could be good at? And what if they have to evict their own family member, how will that feel, and how will the family react?
What if the cousin decides the house isn’t for them, and they back out of the deal, now they have to find a new tenant, or sell the house, and now they’ve got to pay for a mortgage for a house they don’t even live in.
This is just a start, I’m sure you can come up with dozens of others. There are plenty of reasons why selling now is the best thing to do. Be creative.
perhaps you should have considered keeping your options open and offered to L/O the home yourself at better terms if that’s where she’s headed and you can’t steer her back on the course of action you had originally set out…y’know a stranger that starts saying "you can’t do this or that… yada yada…might just be putting himself in the wrong light (good intentions and all)