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.

Comments(4)

  • thomasgsweat17th November, 2003

    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.

  • InActive_Account18th November, 2003

    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.

  • ddhamilt18th November, 2003

    What methods do you suggest in keeping the title clear? Can you also directly pay the property tax, etc? I

  • thomasgsweat18th November, 2003

    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.

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