A Scary Thing To Do????

MacysMom · **A Scary Thing To Do????**

Some of you might recall my post that we are selling our house to downsize to a more efficient, cheaper, house. It has been on the market since March. We have had some lookers, but not even 1 low ball offer. Our house is a 3 story Victorian which we have done a lot of work to. We really are desperate to sell. Bottom line, WE CANNOT AFFORD IT!

We are wanting to move 30 miles away, back to the town we moved from. We had hoped to sell and be moved before dd starts school so as not to switch schools after the year already starts. But our house is not selling! I am very stressed and do not know how much longer we can keep this up. There is a couple interested in renting it for 3-6 months and then purchasing it. My realtor talked to their banker who stated that yes, if their finances stay the same or improve they will be allowed to borrow the money at that time. (They are waiting for satisfied debts to drop off their credit report and to pay off one more $2000 debt). My realtor knows the couple, they have good jobs, they are mature (40's and 50's), and she has asked if we would be interested in doing this. It all feels so risky!! Would any of you consider doing this?? I need some advice desperately.

momof2boys · 07-05-2007, 11:37 AM

I suppose with a really good attorney I would consider it. Just make sure all are t's are crossed and your i's dotted.

kellynkay · 07-05-2007, 11:48 AM

I wouldn't unless I was absolutely positive I was comfortable with both payments (your new house & the old house) if they backed out. However ~ I am NOT a risk taker

Grey · 07-05-2007, 12:13 PM

I feel your pain, we've been trying to sell our (vacant) house since March --- we had to move accross country for a job.

It concerns me that your realitor 'knows' the couple who wants to rent and then buy. Are you sure she has your best interests at heart??

I guess I don't understand why they'd want to rent for a few months and THEN purchase... that seems a little shady to me --- I'd fear they're just looking for a short term place to live.

I dunno.... I'd say no unless you were 99% sure about it.

MacysMom · 07-05-2007, 02:29 PM

The realtor knows the couple because we live in a town of 2500 people. We are not from there so no one knows us. Apparently, they are eachother's second marriage and had credit damaged by divorces and have been rebuilding their credit. They have cleared up a lot but we were told it can take a couple of months for the credit report to reflect that. They've been renting in the next town over, and their blended family (5 teenagers) have not happy with the newschool so that is why they are wanting to move now, so kids can start next school year at their familiar school again. My first thought was NO WAY. But, the nervous nelly in me is afraid that once high gas bills come again this winter we could be headed for foreclosure. I am in knots. I just wish the house would sell!! Anyone have any experience with "UG" or any of the other advertisers that say they buy houses? The realtor isn't really pushing it, I guess. She just knows the situation we are in right now. She just told us about their situation. I guess they had came to her to look for a house and explained the terms they were able to do.

Kim · 07-05-2007, 03:23 PM

I'd be careful with this one. We had friends in a similar situation. Their rental people "promised" to buy the house within 6 months, then not only backed out of that deal but trashed the house in the process. I'm not suggesting this would happen to you, I'm only saying that stuff like that does happen. I don't think the couple I know was very careful about getting anything in writing. Even if they were, it's pretty easy for people to back out on agreements like that.

morrismomaof2 · 07-05-2007, 03:35 PM

Do you know a realtor or attorney that you could talk to and get a second opinion? See what they say. If they think it would be a wise choice then I would have your attorney draw up the paper work and make sure there are no loop holes that they could use later to wiggle out of their contract. Also, like any other landlord I would have them pay first/last and deposit before they move in so that way if something did happen you would have a deposit at least.

OR

Maybe try another realtor, if there is one in a town that small. Maybe advertise more if there are other small towns nearby.

ladulce · 07-05-2007, 04:43 PM

Perhaps they would consider a land contract. In a 6 month land contract, they would have to give you the down payment in advance, and, then, they basically pay rent and get a credit for it when they can finance the house. The good thing with a land contract is that you have the down payment, and, they have a set date when they have to find financing for the home. If they dont have financing in place, you can either extend the length of the contract, or, ask them to leave. You keep the downpayment, so, usually, people come through with the funding instead of forfeiting it.

Personally, I have had a home on land contract before. The couple divorced before the refinancing period was up, so, I had to put it back on the market, but, it took the worry off of me for a few months, and, had they not divorced, would have been perfect.

I, personally, would take them up on the offer. Especially if they are not a really young couple. My thinking would be that they have had to pay a mortgage or rent for the last 20 years, so, they should understand that they need to pay. I would ask to meet them before agreeing to it, and, I would also ask for references, if you aren't going to do a land contract.

Best wishes!

MacysMom · 07-06-2007, 10:36 AM

Thanks for the replies. I know there would be a legal contract set up in place. Dh and I are still discussing it and we have told our realtor that we would like to meet the couple in person before we make any decisions.

desertmom · 07-06-2007, 12:11 PM

Something to keep in mind: As the time comes where they need to find a lender and they don't want to or can't do the deal, it's so easy for them to back out. I've seen this. All they have to do is present a letter declining their mortgage application. But for every company that will turn them down, another company can approve them. Also, they can get approval, but not go for the loan because they won't agree to the rate, points, other terms, etc. It's easy to "not" get approved. It's very easy to back out of this, even w/ a legal doc, because of the financing issue. Just go to a company with tight underwriting and they can get declined. That's all they need to back out. Too many variables.