[Castle Cliff]

Originally Posted by Buzz123

You'd think a short sale would hurt property values more than having a renter. We can't do anything about it in our HOA. One thing to keep in mind, if it's a small community they can't really afford lawsuits.

Olecapt, would a rent with option to buy contract override the no rent?

Nice question buzz. Id like to know also if possible. I'm sure there are ways to circumvent. Rent to own would certainly be on the cards.

[algia]

But why should she ruin her credit over a stupid rule? I would challange that in court.

Originally Posted by olecapt

Short sell it. There really is no other viable option. If the short sale does not fly you let it go to the lender...

Presuming it was properly drafted and incorporated no rent restrictions are allowable. I doubt even a BK court could override...these restrictions run with the property not the owner.

You could have an RE lawyer take a quick look for $200 or so...but I would not hold out much hope.

[olecapt]

It is not a stupid rule. It is a restriction on her property rights that she agreed to when she bought the place.

Rent to own would simply be a kind of lease. Still a rental. You might be able to work some sort of installment sale but that is very tricky.

It would of course all be dependent on the exact language in the CC&Rs but I would doubt any form of a lease option would work.

Note also that any mortgage will likely have terms that limit ones ability to do strange forms of ownership change.

[Vegas16]

olecapt:

How about an Option Agreement, with an Option payment distributed over 12 months, with the right to purchase at any time during that 12 month period at a set price above the balance of the note. Buyer/tenant would be allowed to live in the house for free during that period (e.g., not a renter, more of a house guest). The Option Agreement could be exercised during that time, and would expire at the end of 12 months. Buyer would never purchase at such an inflated value, but could if they wanted to.