Program for rent to own?? (clause, mortgage, mortgage, attorney)
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A friend of mine is trying to sell his home to his renters due to the fact he has decided to let it go to Foreclosure. I am trying to help him out and finding ways to get his home sold to the current renters, which they want to buy it.
The renters cannot get a loan by FHA or Conventional since they had recently did a bankruptcy from my understanding (less then a year ago).
Is there any program that would help / assist the leasing residents to buy the home and not rent it? Maybe some kind of closing that can be done and maybe the renters can piggy back the original mortgage? Maybe some type of 3rd party of some kind to assure all transactions will be completed?
Don't know of any programs & lending is getting so much harder they probably can't get a loan.
Rent to own has a lot of pitfalls and we always refer to an attorney. The owner has a mortgage and the lender will not let him sell the house in this manner. There is a "Due on Sale" clause where they would call his loan due if he tries to sell it.
May be something out there but I've never seen it. You might ask around the mortgage part of RE. The lenders might know more.
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