Question About Liens And Lease Options
I am a newbie to lease options but like the investment style.
I met with a very motivated seller who has several issues with his home. He can not afford to make the payments on his home any longer, and there are liens against the property. Since he can not make the payments on his home, he certainly can not pay off the liens at this point.
Can this house still go under a L/O with the liens against it?
Thanks to everyone for the great advice and information I have found on this site!
Ann
A L/O can still be done, it's just that when the T/B goes to exercies the option, the liens need to be paid off, and your backend profit will be that muh less...
[ Edited by nebulousd on Date 03/19/2004 ]
You would need to do a title search to see how many liens there are and how much they equate to.
Keep in mind, even after you take this house L/O, more and more liens can still attach to the house via the seller if he runs up any more debt and doesn't pay.
It is possible that a situation may occur where the payoff amount on the mortgage and the lien amount exceed the option price you gave your buyer and you would have to come out of the pocket and make up the difference.
That was probably something you didn't want to hear. huh?