Possible Deal
Property is in PA. Property value is 127k per appraisal last summer. Borrower believes home has appreciated or at least held value since. Currently owes 70k. Simple deal right? Nope. Bororwer gets sole income from renting rooms out of the house for 2k a month plus receives state help (was recently injured and no longer employed).
Sale date set to April 20th.
I think homeowner could be enticed to sell property to investor and then rentback.
Sure Chet this is done all the time its called selling or financing the lease.
Is there a mortgage on the underlying land? How are you going to service that mortgage other than this lease? Most mortgages have an assignment of rents clause which would prohibit this but if there is enough debt coverage elsewhere you might get a lender to release this one lease.
there is no mortage on the ground. The Stanford University Trust own the land out right.
I guess I am talking to the wrong people or the short on the ground lease is a deal killer for them.
Other than 3000/mo rent on one parcel, the leases were prepaid when entered into.