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What gives with this?
If I bought the house, who are they to tell me that I couldn't live in it? If there were renters, couldn't you just tell them to get lost?
They can require anything by contract - if you don't like it, then buy something else. Maybe the owners are selling it and leasing it back like many businesses do with their real estate.
What gives with this?
If I bought the house, who are they to tell me that I couldn't live in it? If there were renters, couldn't you just tell them to get lost?
Betcha a nickel that it has a lease in place that has to be honored.
So, you would not be able to finance as a primary home until end of lease.
It is a bit of an awkward way to disclose, if that is the case, but selling a leased property subject to the lease terms is very common.
It sounds like the owner has a conflicting rental agreement - and now wants to sell the house. Selling to an investor-landlord will help them do that, while selling to an owner-occupant will violate their rental contract.
If you really want to buy and occupy the house, ask the seller to talk with the renter about an early termination settlement (they may already have one).
Rental agreements always have to be honored. They are a contract. Even if ownership changes hand, the contract must be honored.
The landlord can negotiate with the tenant to move out early, but the tenant is not required to accept that. You can get owner occupied on most loans with a 60 day occupancy (some allow 90 days). That means, if you buy the house with only 2 months left on the lease, you can still obtain a regular primary residence loan. If it's longer than that, it's investment.
The house next door to me has renters with a lifetime agreement. Yep, they can stay there for their life, and the rent is fixed at $600 a month. It does not even cover maintenance, repairs and the taxes! And one could rent the house for almost 3 times that amount!
The house next door to me has renters with a lifetime agreement. Yep, they can stay there for their life, and the rent is fixed at $600 a month. It does not even cover maintenance, repairs and the taxes! And one could rent the house for almost 3 times that amount!
Who wrote THAT agreement? It has to be a scrivener error
Betcha a nickel that it has a lease in place that has to be honored.
So, you would not be able to finance as a primary home until end of lease.
It is a bit of an awkward way to disclose, if that is the case, but selling a leased property subject to the lease terms is very common.
If that were the case, I potentially use the rental income to pay my mortgage if and until they renter's lease ended. That's a great idea, and would even possibly generate a little income....however, I need to move very soon (like in the next three months), so I think I might have to pass on this one.
If you buy a tenant occupied home, you will have to get an investor loan. Higher rates, lower loan to value, and you will have to honor the existing lease until it expires or the tenant can sue you.
If you lie to a lender about intending to live in it and then don't, that's mortgage fraud that comes with a myriad of unpleasant consequences.
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