I'm on a lease to purchase agreement with my landlord for 3 years. I'm supposed to complete the purchase by the yeard end. But the problem is the agreed purachse price we setup 3 years ago have long outdated. Now the house can only be appraised for about 80% of the puraching price. So the landlord decides to do short sale per my suggestion and we promised to make the short sale offer as soon as they get it listed. We are already prequalifed, and has the down payment fund available. But the landlord insists on us moving out at end of the year and told us we're welcome to look for another house. Who in the their right mind would chase away a enger and qualified buyer in today's housing market? And why create such a hastle if we can continue renting from them while waiting for the short sale to complete. If the deal doesn't work out for us then we can easily move out. What's their motivation for kicking us out so firmly? The only reason they cited is the "interior inspection". Why would that require us move out? Please help!!!!!!!!!!
something is either not right here, or he is getting bad advice. In a short sale, it is always preferable to keep the property occupied or the seller runs the risk of the lender taking control of the property and changing the locks.
Based on my understanding, the short-sale is the process that required approval from the Lender before you can call it "this property is for short-sale". Not all short-sale cases submitted to the Lenders, got approved.
Are you an agent??? Just curious.
Thank you, Joe. I quoted your response to my landlord and it's obviously getting his attention. I'm still waitng for his response
Reply to Annie Xie:
First of all, How was your term lease to purchase agreement with Landlord? Does it flexible with market or fix price? Was the term of the lease required to purchase the property within 36 months Or after 36 months?
-It seemed like you signed the contract but you did not fulfil and now you have no case at all. Your contract "lease to purchase" was not for short-sale since it started 3 years ago
No, the lease will expire on Dec. 31, 2011. I'm not arguing about that. It's just beyond my comprehension that they want us move out before lisitng ofr short sale. I understand they have no legal obligation to extend our lease contract during short sale. But for their own benefit, they should. Kicking us out does nobody any good.
I agree with Joseph. I think that your best option is to have an attorney read over the details of your lease purchase agreement and advise you accordingly of your viable options. It is best to have a home occupied in a short sale to prevent the lender from taking over and changing the locks.
Thanks for the suggestion. The lease expires on Dec. 31 2011. It's pretty clear. No argument about it. I'm just trying to talk sense into my landlord to extend my lease for the mutual benefits
There are many, many factors in whether or not a property & borrower will qualify to do a short sale. The primary factor is whether the borrower (your landlord) is experiencing a financial hardship. If he has a tenant in there paying rent, he shouldn't have a hardship (unless the rent doesn't cover the payment). If the property is empty and there is no rent coming in, then there's a hardship, so I think you are in a catch 22.
If you have a lease/purchase, does that agreement not constitute a sales contract? You can move forward to complete the purchase if you want at the agreed on price, but if/when the appraisal comes in low, the seller could submit all to their lender for a short sale at that point. If he has a ready, willing and able buyer, but the appraisal comes in low, that's pretty much the evidence that he needs to prove up the current value of the home with his current lender, but he'll need to show some other hardship.
Check with an attorney, but the owner probably can't require you to move except at the end of the lease period or after the proposed closing date in your contract.
You need to also talk with a short sale specialist Realtor in your area so that they can help you and the seller put the short sale paperwork together for the owner's lender. The owner's lender won't work a short sale without a Realtor helping out with all the paperwork... it's just too complicated.
Thank you Kim:
As I said above, the lease expires clause is pretty clear and final. Just tryint o talk some sense into the landlord to renew our lease for the mutual benefits.
I would check with an attorney. The one issue that I see with you purchasing the property is the bank not considering it a "arms length" transaction since you are already residing in the property under the lease to purchase.
it would not be an non-arms length tranacton