In a tight spot - PLEASE HELP (rate, financial, bank)

[smooth]

Folks,

I was hoping someone could offer me some advice. I am in a tight spot. I have recently purchased a home and will close at the end of August but the current owner plans to rent back from me for about 45 days (his new place will not be ready). This was an Addendum to the contract. We agreed on this but never added a rental rate to the agreement. (A bad move on my part.) This rate typically should be equal the new owners (me) mortgage and taxes (approx $60 per day) but he will not agree to this. He is only offering $40 per day. I checked w/ my bank to see what a rate-lock extension would run me and they said 0.5 points on top of the locked in rate! ! Ridiculous! Can anyone offer some advice???

Thank you for your time.

[old_cold]

I'd suggest you contact your attorney...the one that had you sign an agreement without specific terms.
I have always been led to believe there is no contract if there are no terms.(open ended) I can most certainly be wrong about this.

As far as 'typical'...we are renting back and what we agreed to as an amount has nothing to do with the buyers new financial obligations.We would have gone elsewhere if we had to pay that much.
Really...call your lawyer.

[TristansMommy]

Originally Posted by smooth

Folks,

I was hoping someone could offer me some advice. I am in a tight spot. I have recently purchased a home and will close at the end of August but the current owner plans to rent back from me for about 45 days (his new place will not be ready). This was an Addendum to the contract. We agreed on this but never added a rental rate to the agreement. (A bad move on my part.) This rate typically should be equal the new owners (me) mortgage and taxes (approx $60 per day) but he will not agree to this. He is only offering $40 per day. I checked w/ my bank to see what a rate-lock extension would run me and they said 0.5 points on top of the locked in rate! ! Ridiculous! Can anyone offer some advice???

Thank you for your time.

Check with your attorney. Those adendums usually include that the owner will have to pay you what your mortgage/taxes are a day.. it should havebeen in the contract.. and if ti wasn't.. then complain to your attorney that he didn't do the right thing by you.. and IMO he (your attorney) should be paying you the difference between what you should be recieving and what you are becasue that should have been a no brainer for him!

[old_cold]

BTW, when you do get around to setting an amount,the ones benefitting the most should be the ones willing to pay for it

[renriq02]

You should also look to see if you can apply with a different mortgage company

[Poltracker]

Make sure you include hefty penalties for staying past the 45 days too.

[stacylee926]

You can also charge them a security deposit - which I do recommend. They will have furniture in the house when you do a walk thru before closing and it will be much harder to inspect. Once they move all that furniture out after 45 days - who knows what you will find. They can leave the place a mess and not care - because they are just renters at that point. Without a security deposit, they have no liability, unless you chose to sue them and that is costly.

I would make sure this rental is treated just like if you rented a place - the whole landlord thing.

I have heard horror stories about renting back to the previous owners. The minute you close you become the landlord and the rules totally change - protect yourself.

[GLS]

Originally Posted by old_cold

I'd suggest you contact your attorney...the one that had you sign an agreement without specific terms.
I have always been led to believe there is no contract if there are no terms.(open ended) I can most certainly be wrong about this.

As far as 'typical'...we are renting back and what we agreed to as an amount has nothing to do with the buyers new financial obligations.We would have gone elsewhere if we had to pay that much.
Really...call your lawyer.

I agree "smooth" should contact an attorney..........just NOT the one who had him sign an agreement without specific terms.

[Briolat21]

We "rented" our home from our buyers for 1 month, because our close date was 10 days after they looked at the place!!

The rent was 1 months mortgage payment for them, + a security deposit (1/2 months rent). We got our security deposit back at the end of that time - and we had 40 days to move out instead of 10!!! Very worthwhile!

[smooth]

Thanks for all the info. Very helpful.