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Refi A Tenant Buyer At End Of Lease Option Period?

#1 User is offline   Sam in Hawaii 

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Posted 13 May 2009 - 09:23 PM

I am looking to sell my townhouse on a lease option. I have buyer who is ready to put money down.

I just talked with my loan officer who I normally work with (though I haven't done a lease option in 4 years) and he tells me that since it is a lease option, the exit strategy for the buyer is NOT a refinance for her.

The mortgage broker says that since she will not be on title, there will be no way to refinance her as per my proposed exit strategy.

What am I missing?

Any help on this would be greatly appreciated! Thank you
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#2 User is offline   tazcablegirl 

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Posted 16 May 2009 - 02:28 AM

Can your buyer qualify for financing? Does she have a DP issue? What is the reason she has to purchase L/O or is that what you want out of the deal?

Please give more details about the transaction.

TAZ
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#3 User is offline   Jonathan RexfordFL 

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Posted 19 May 2009 - 06:46 AM

Your mortgage broker is correct.
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#4 User is offline   Sam in Hawaii 

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Posted 19 May 2009 - 12:47 PM

View Posttazcablegirl, on May 16 2009, 02:28 AM, said:

Can your buyer qualify for financing? Does she have a DP issue? What is the reason she has to purchase L/O or is that what you want out of the deal?

Please give more details about the transaction.

TAZ



Thanks Taz,

Here is the scoop......

- I am overleveraged, meaning owe more than it is worth
- She wants it, loves it and only has $5k to put down
- I do NOT have any other interest or renters at this time
- My income right now cannot support carrying this property

I am kind of out of options.

If, down the line, she gets financing for it, I will most likely have to take back a second mortgage.

Not sure what else to do!

Thanks for your feedback.

Sam
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