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Deal Blew Up |
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We bought our home in 2004, we lived there until September 2007 when my grandmother fell ill and needed to move in with us. She can not do stairs so we found a house that had a bedroom and bath down stairs for her. We signed a 5 year lease-purchase with a couple who 'loved the house' and whose mother was a friend of the family. We never got the full deposit, which we ended up having them add to the monthly payments. Well June 1st we received a letter stating they were giving their 45 days notice. We have a signed agreement with early termination penalties written in. They have agreed to pay these but said they just don't see how they could ever afford the house. So now we have a huge problem, the area has decreased in value since we moved and we had pulled the majority of the equity for the new house, assuming that they were going to be buying the house, this didn't seem like a bad idea at the time. We really don't know what to do, we are still current on payments but are very tenative to become regular 'landlords' and are worried the house won't sell. We owe $306,800 and the area now is at about $280,000 for this house. Any advise? Please help us!!! Thank you, Kristen & Nathan Steinman |
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I suspect that your buyer-tenants realized they were locked into an agreement to buy the place for more than it is now worth. Can't blame them for wanting out.
I wish a had a magic solution to your problem, but I don't. Instead of selling the house, you kept it as investment property. If you invested in stock that had decreased in value, I couldn't offer any advice for you except to hold on to it, or sell at a loss. Same with this house. Either do a better job at renting it this time around (insist on a credit report, and analyze it carefully), or --anything will sell if the price is right-- take the loss.
Sorry, that's about it. |
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Edith
Originally published on June 5, 2008 |
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