I have a client who is a tenant of a "troubled property". He would like to purchase the property from the owner, but the payoff on the owner's VA mortgage higher than the ask price of a home with the same plan about a block away.
Owner was prepaid rent and a deposit, and is in no position to refund. Owner plans on filing bankruptcy soon, and property is not listed. There was an unsuccessful listing of the property a year ago. At this point Owner claims to be only 1 month behind on mortgage. Mortgage is serviced by Wells Fargo.
Would listing the property and getting farther behind on the mortgage be essential or only helpful in orchestrating a successful short sale? What would be the best way to handle rent payments that would protect the tenant and not sour his option to purchase?
I can deal with the nuts-and-bolts of a short sale, but have never approached the process from the perspective of a tenant purchase of an unlisted property. The bankruptcy also adds complexities.
Matt Peters, Albuquerque-Rio Rancho, NM Matt@REALTOR.com
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