How Can I Help Out My Friends Who Need To Sell?
I have friends who own a home. I am not familiar at all with lease options, or anything of that nature. Here are the details on the home. (keep in mind...the house was listed for 6 months with a realtor and did not sell, and is now listed as a FSBO. It is in a great neighborhood, and the house has raised in value about $70k in 8 years)
They will sell the house for $155,000 (now, since they wont pay realtor costs)
They owe about what they will sell for
The house just appraised for $173,000
The current mortgage comes out to about $900.00/month, plus taxes, which are outrageous in this part of town. Monthly expenses on this house are about $1200.00.
Is there any way I could help them get out of this house they dont want, and, is this something that could help me, while im helping them?? I would like to do anything I can to prevent them foreclosing, or something of that nature....which is not far down the road....but, I also want to protect myself, obviously. Any help or tips on what I could do would be greatly appreciated! Thanks guys and gals, in advance!
-Nathan
Dear Nathan,
Check your rental market, see what you can rent it for, or lease it for. Tell us about the taxes, that seems to be the breaking point.
Make a deal with them, save their credit, just cut deed and go into title, they are to pay the next three months mortgage payments that is their contribution as to getting out of this deal.
Now you are the owner, simple solution rent it out, try for lease and then try to lease to someone who would like to own the house and for that you agree to sell it to them some time in the future at end of lease for say a profit of ?? Whatever. Do not get too greedy, Stand by ready to come back with a second mortgage if they are incapable of a decent downpayment.
Come on now put the brains to work, I think you will enjoy and in a year or two maybe about $10,000 or so in you hand. My god you might be able to afford to go to the convention. Give them my love.
Conceiving Luciuis
The taxes are about $3000/year....so, $250/month. How exactly do I take over the current owners mortgage? What paperwork is required, and how do I ease their worries about the payments not being made on time. (not saying it would happen....but it is a question they were curious about). Also, what does it cost for insurance to rent a house out? Do I need to have special insurance on the home...or just basic home owners? Thanks for all your help!
Hey that's a good question Lufos. Is he actually taking over the mortgage or is he just taking title and paying the mortgage for his friends? I'm assuming it's the latter.