Negotiating Tenant Purchase of Short Sale Property

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Real Estate Agent with RE/MAX Premiere

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     
(505) 269-4791 . . . .  Your Direct Line to RESULTS
www.IdealNM.com           www.Relocation2Albuquerque.com

 

 

 

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Rainer
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Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,

MATT,

It's really not too much different to do a Short Sale in that instance, although it does need to be on the market or the Lender will probably not take the sale into consideration. It might also be a good idea not to mention the buyer is renting, unless asked.

What I do with the Rent is to put it in escrow and use those funds for closing or to help with any contributions that may be required. You tenant needs to know that if they have a written lease, he is still obligated to pay the rent even if the Landlord is not paying his mortgage.

List the property and start the process, brother.

Aug 14, 2009 06:15 PM #1
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Rainer
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Matt Peters

(New Mexico Broker)
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