Sandwich Lease And Owner Foreclosure
Hi,
I am about to offer a L/O to a landlord FSBO and would like to sandwich it to a T/B on my buyer list.
My fear is that what happens to the tenant's lease AND option if the original landlord goes into FC? Do I have to give back the option money, and am I under any legal obligation as far as the lease is concerned? Thanks.
You want to either make the payements directly to the mortgage company or to a property management company who then pays the mortgage company.
You do not want to put the money into the owners hands.
Yes, pay the money yourself (if the owner trusts you) or through a third party collector.(e.g. Title Company).
The bigger worry is keeping the title to the property clear and unclouded from liens and judgments.
What methods do you suggest in keeping the title clear? Can you also directly pay the property tax, etc? I
Two things that I would suggest:
Get the deed signed and in escrow waiting for you to purchase. You don't want to have to chance down the seller to buy the place.
Get a performance mortgage signed and recorded. This will guarantee the sellers fulfillment of the agreement. This should protect your interest about as best as it can be protected in an L/O.