You are here:
- Home
- Real Estate
- Home Buying/Selling
- Buying or Selling a Home
- Buying and reselling foreclosures
Buying or Selling a Home/Buying and reselling foreclosures
Advertisement
Question
Heather,
I'm buying a nice foreclosure and already have a buyer who wants to do a 2 yr. l/o, with a large down payment.
Do I do a rent to own or lease option? Do I just collect rent for 2 years then just let him get a loan?
He will be paying twice as much as I'm paying for it, so I will make out ok. I just need to know how to structure the purchase...do I have to hold his down payment in escrow or is it mine to spend?
Do I figure his payment like a fixed 30 year loan and add extra for T,I, and to cover my payment and give him a great interest rate?
My PITI will be $500/mo total...The place should rent for at least $900 in the current market.
Can I rent/sell him the house "as is" since it needs cosmetic work (he knows this)? It's still a great buy.
I just wondered how I structure this since I have a mortgage on it. Do I disclose in the paperwork that I have a mortgage on it?
Thanks,
Mary
You are asking questions that seek "LEGAL OPINION, ADVICE & GUIDANCE." To legally and accurately answer your inquiries one must be a (your) State-licensed Attorney ( one who specializes in Real Estate Law is recommended).
In some States Real Estate Brokers are granted a "Limited" authority to practice "Real Estate Contract" Law.(One who does BOTH sales and property management is suggested)
Further, in some States Licensed or Certified Financial Planners have the authority to work with someone like you, on a project like yours(I don't recommend this, however)
I URGE YOU TO OBTAIN THE ASSISTANCE OF A LOCAL LAWYER WHO KNOWS THE REAL ESTATE LAWS OF YOUR STATE, LET HIM/HER HELP YOU WORK OUT THE BEST APPROACH TO THIS TRANSACTION, AND TO PUT TOGETHER A CONTRACT THAT MEETS THE NEEDS OF BOTH YOU & THE BUYER, WHILE SATISFYING THE LAWS.
I'm NOT "Heather;" you didn't send your inquiries to me. I just found it in the "Company's" QUESTION POOL and thought you deserved a response! Although not of my making, I apologize fro any delays!
--JIM ROOT
Related Articles
Answers by Expert:
- Dick Dennis
- Jessica Bryan
- liznarr
- Hans Weber, Licensed Broker Associate
- Sue Bernstein
- Karyn Foley
- Dottie Worthington
- Jim Root
- Russel Ray
- Connie Wildasinn-Broker,GRI,RealtorŪ
- Todd C. Menard
- Diann Tonnesen
- John Hendricks
- Jay Denit
- Matt Heisler
- Lisa Webber
- John
- Laurie Stephenson
- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
©2012 About.com, a part of The New York Times Company. All rights reserved.