Any Tips On SELLING To Tenants When Credit Goes Bad?any Tips On SELLING To Tenants When Credit Goes
any Tips on SELLING to tenants when credit goes bad?
I have been lease optioning a house to a tenant for a couple of years...they came in with ok credit but when it was time for them to purchase- we discovered that their credit scores dropped to between 450-480... basically after contacting a couple to lenders- they were denied financing!
....any suggestions on how to sell this house to them?! :-?
.
If they have been 'on-time' why not be their lender for the equity? Ex: FMV $220 Balance $160 Equity $60K
We would suggest the following:
*Their mortgage broker can not know the details just a sales price!
*Sales Price $235K
*Buyer gets a 1st mortgage for 80% of sales price: $188K (Covering your existing mortgage)
*Seller has received 5% in previous L/O as a down payment and will credit the seller. $12K
*Seller financing with a balloon in 5 years $35K with interest only payments on 8% interest rate.
If the buyers salary is solid and not in debt the new mortgage payment at 80% LTV should be fairly attractive with poor credit.
Disclaimer: Acceptable seller credits and creative financing vary by lender. Find an outstanding mortgage broker to help the buyer.
This is one suggestion there are may creative ways to finance the deal.
Good luck,
Eric & Rosa
[addsig]
any others...thanx for the one above!