[Erica Baruti]

Erica Baruti

Good points Dee!

[Erica Baruti]

Erica Baruti

Ben,

I asked her to do what you said. He’s denying the fact that the home is going into foreclosure. He said at the very most he’s paid a few days late, but other than that, she should rest assured that the home is not going into foreclosure… at the same time he said he’d be willing to entertain any offers on the property. He claims he has tens of thousands of dollars in equity and that he could sell at any time, but renting has simply been working out for him all these years. BTW, he’s an out of state owner.

So my thoughts are if he has equity, he may not be interested in a sub 2 deal. Or he may be depending upon his desperation…I’m not sure how to approach this one. She could give him an offer to purchase the home, but like I said before, she isn’t able to get a mortgage loan at this time.

[Erica Baruti]

Erica Baruti

HI Ben,

Thanks for your input. She said she contacted him a few months ago and asked him about selling b/c she thought she’d be able to get a loan. He responded that he would like to sell and that he would accept market price minus the realtor fees. Which is why she asked me to approach him this time about doing a sub 2.

Someone else recommended she not do anything. Just continue paying the rent as she’s supposed to and leave it at that. If the bank takes over they’ll have to honor her lease so she should be fine. And that she should simply look for a place to move to when her lease expires. However, she’s concerned that if someone purchases the property and they claim it’ll be their primary residence, then she’ll have 90 days to move out. That’s the law in GA. I’ve attached the tenant landord handbook for GA. The Foreclosure & Tenants section starts on pg 72.

http://www.dca.ga.gov/housing/housingdevelopment/programs/downloads/Georgia_Landlord_Tenant_Handbook.pdf#Foreclosure

[Erica Baruti]

Erica Baruti

Thanks Dee! She’s going to bring the issue to the owner’s attention today. I gave her your recommendations. Hopefully Georgia honors tenants leases even in cases of foreclosure.

[Erica Baruti]

Erica Baruti

BTW, she has a lease that’s good until Jan 2019, she moved in Jan 2017 and signed a 2 year lease. Would the bank honor the lease?

[Erica Baruti]

Erica Baruti

Thanks William. The buyer is an investor so I was thinking they’d be ok w/having a renter in there. But you’re right the LTV is a bit high…

[Erica Baruti]

Erica Baruti

Thanks Jackie! Very useful information. I’ll keep you posted on updates.

[Erica Baruti]

Erica Baruti

This second home is valued at $360k, we’re contracted at a buy price of $335k. Minor things in it need to be fixed or changed that cost about $1k altogether. Otherwise it’s in great condition. The seller is older (75) & doesn’t want to be a landlord anymore.

[Erica Baruti]

Erica Baruti

Hadn’t thought about that. If I sell with seller financing how would it work? I’m open to trying that?

I also have another home that I planned on leasing for myself & my family, but I’ve changed my mind b/c I don’t want to move. I just signed a straight vanilla 2 year lease option with the owner. There’s no mortgage on the house and he didn’t want to seller finance. There are no stipulations in the contract that I can’t sublease. Do I need to go back to him and ask him if I can do that? I was considering doing a lease option on this one as well, but I’m open to your suggestions. It’s a 4br 2.5ba home w/a den in one of the best school districts in the Atlanta area.

[Erica Baruti]

Erica Baruti

I’m interested in the Atlanta & Jacksonville areas.

[Erica Baruti]

Erica Baruti

I’d be interested.