Comments on: Lease or Rent to Own Homes

By: Augie

Augie — Sat, 05 Sep 2009 21:37:01 +0000

I don’t know what state you’re in but in many states if a property is sold, the lease and tenant go along with it. The new owner is legally bound to honor the lease and all the terms in it. The seller cannot force you out…it is against the law. He could offer to buy you out and then it is up to you whether or not to accept his offer. I would also want confirmation as to where my security is being held if I were you.

By: Augie

Augie — Sat, 05 Sep 2009 21:32:16 +0000

First let me say I’m not an attorney. Second, you may want to check with one. Now that’s out of the way, here’s what the federal foreclosure legislation has to say as I undersand it. If a tenant is foreclosed out of a property the lender has to honor the lease as long as the tenant is paying rent. Upon termination of the lease term, the tenant has to move. Your situation is a bit different because the landlord is not the owner. This is why I suggest an attorney, because logic (and hopefully, the law) would suggest that if the landlord is acting as a agent of the owner than the lease would still have to be honored in the foreclosure.

This could also present you with an awesome opportunity. You mght be able to buy the house as a short sale. As an owner occupant, you might even get the bank to financine you (rates are still really low). If you get it all done and closed before Dec. 1, you might even qualify for the Federal Stimulus money, $8,000 free cash. How’s that for making lemonade out of a bunch of lemons?

Good luck!

By: Naedj

Naedj — Tue, 01 Sep 2009 17:47:10 +0000

I have a lease on a property that my landlord doens’t own. House is listed as short salem\, am asked to leave. What can I do

By: Naedj

Naedj — Tue, 01 Sep 2009 17:44:44 +0000

I have a lease on a property that is owned by 2 people. One of the owners knew about it and did not inform me. Now the property is listed as short sale, am asked to vacate when it’s sold. Is there anything I can do

By: Naedj

Naedj — Tue, 01 Sep 2009 17:40:22 +0000

My landlord gave me a lease (expires march 2010) on a property that he doesn’t own. One of the owners knew about this act from the landlord and collected each month for the so call “landlord” who lived out of state. Now the property is listed as a short sale. The real owners are asking to leave by the time the short sale is over and purchased.
Is there anything I can do as tenant with this lease

By: Augie

Augie — Mon, 16 Mar 2009 21:37:34 +0000

Great question. How do you avoid making payments while looking for a tenant? The best way is to negotiate your deal such that payments begin once you have a tenant ready to move in. While it would be great to always have a tenant lined up before you acquire or control a property, it isn’t always possible. It is up to you to negotiate with the other party as to party what will and won’t work. Negotiate for mutual benefit. I usually start by offering to start making payments 3 months after we sign the paper work because in many cases the property is already vacant and they are making the payments anyway. Sometimes they balk, sometimes say only one month, or maybe two but it gives me some time to locate a good tenant without funding the monthly payment out of pocket. You can also ask for three and begin payments early (i.e. as soon as you find your tenant). If they ask, “Why the delay?” My response is that, “Rather than spending money on making payments, I’d rather invest in advertising, tenant screening and making the property spectacularly appealing!” That will serve both our interests.

The terms are always negotiable. Be flexible, be creative and be sure to solve the other guys problem (don’t make it your own) and you’ll find lease options and lease purchases to be excellent transactions. Maximum leverage with minimum risk!

By: paul

paul — Sun, 15 Mar 2009 01:47:44 +0000

What is the best way to avoid paying monthly payments on the property while looking for a sub leasor? Try to have people lined up to lease the property even before you lease it?

By: Augie

Augie — Mon, 19 Jan 2009 13:59:18 +0000

By your comment, it sounds like you already have an option to purchase the property. The first rule of dealing with homeowners in foreclosure is to know your state law regarding dealing with sellers in foreclosure. There may be local rules in your state which dictate what you can and cannot do. If there is no equity and the payments are more than market rent will cover, I’m not sure why anyone would want to exercise and option on that property. If it were me, I’d let it expire. At best, it might be a candidate for a short sale.

By: Julia

Julia — Sat, 17 Jan 2009 09:16:28 +0000

The owner is going in foreclosure by the end of this month. He bought the house for more then what it’s worth now. The payments are high. How can I excercise L/O in this case?