Issue that I could use advice on

Larry_OHF · 03-05-2011, 12:37 AM

I am currently renting a mobile home while we're trying to sell our home in Winston-Salem, NC. A lady has been renting from us for the past six months in that old house. The bad news...she cannot afford to pay rent any longer. The good news...she was approved in court today to receive 3 years back-pay for disability insurance, and she wants to buy the house as soon as she has the money.

Problems: Her lawyer told her it could take a few months for the first check to appear. Also, from my banking days I know that banks won't give a person a home loan or any kind of major loan if the only source of income is not work income. She wants the house and we want her to be the one to buy it, but I don't know how long to wait. My wife said that it's better to allow her to live there for free rather than leave the house abandoned because at least she's keeping it up where we would not be able to and sitting abandoned for months while waiting on a buyer could be devastating.

Thoughts?

SpiritWarrior · 03-05-2011, 02:24 AM

Your wife is wise. I'd say, if no immediate alternative arrives, rather than let the house fall into disrepair, allow her to stay there for free as a "house-sitter". Wait to see if she can buy it in a few months , while, in the meantime keeping your eyes open for buyers and even advertising the property as "for sale" Shitty time to sell unfortunately, but great time to buy if you have the cash. You might get lucky if your price is slashed.

Bungleau · 03-05-2011, 10:21 AM

Questions remain to be answered...

When she gets this back pay, will she buy the house outright or need to get a loan?
Are you willing to consider a land contract (where you essentially give her the loan)? I believe you could then sell that to someone else later, albeit at a discount.
Have you consulted a property attorney? I would be *extremely* hesitant to let someone occupy my expensive asset for no charge with no rules, guidelines, or expectations.
What are the odds of getting another renter in there? Her leaving does not mean the property has to stand abandoned.
Have you talked to a property management company about possibly handling this for you?

Frankly, I get nervous with what I hear you say. I'm sure I don't know the entire story, but it sounds like you're really exposed here, and the downside is losing the asset (this house). Are you able to weather that loss?

You have more options than you may think.

Felix The Assassin · 03-05-2011, 09:53 PM

B is on to something here for sure.

Property management is the only way to go when it's a long distance rental.

03-05-2011, 12:37 AM	#1
Larry_OHF Ironworks Moderator Join Date: March 1, 2001 Location: Midlands, South Carolina Age: 48 Posts: 14,759	Issue that I could use advice on I am currently renting a mobile home while we're trying to sell our home in Winston-Salem, NC. A lady has been renting from us for the past six months in that old house. The bad news...she cannot afford to pay rent any longer. The good news...she was approved in court today to receive 3 years back-pay for disability insurance, and she wants to buy the house as soon as she has the money. Problems: Her lawyer told her it could take a few months for the first check to appear. Also, from my banking days I know that banks won't give a person a home loan or any kind of major loan if the only source of income is not work income. She wants the house and we want her to be the one to buy it, but I don't know how long to wait. My wife said that it's better to allow her to live there for free rather than leave the house abandoned because at least she's keeping it up where we would not be able to and sitting abandoned for months while waiting on a buyer could be devastating. Thoughts? __________________

03-05-2011, 02:24 AM	#2
SpiritWarrior Jack Burton Join Date: May 31, 2002 Location: Ireland Posts: 5,854	Re: Issue that I could use advice on Your wife is wise. I'd say, if no immediate alternative arrives, rather than let the house fall into disrepair, allow her to stay there for free as a "house-sitter". Wait to see if she can buy it in a few months , while, in the meantime keeping your eyes open for buyers and even advertising the property as "for sale" Shitty time to sell unfortunately, but great time to buy if you have the cash. You might get lucky if your price is slashed. __________________ Still I feel like a child when I look at the moon, maybe I grew up a little too soon...

03-05-2011, 10:21 AM	#3
Bungleau 40th Level Warrior Join Date: October 29, 2001 Location: Western Wilds of Michigan Posts: 11,752	Re: Issue that I could use advice on Questions remain to be answered... When she gets this back pay, will she buy the house outright or need to get a loan? Are you willing to consider a land contract (where you essentially give her the loan)? I believe you could then sell that to someone else later, albeit at a discount. Have you consulted a property attorney? I would be extremely hesitant to let someone occupy my expensive asset for no charge with no rules, guidelines, or expectations. What are the odds of getting another renter in there? Her leaving does not mean the property has to stand abandoned. Have you talked to a property management company about possibly handling this for you? Frankly, I get nervous with what I hear you say. I'm sure I don't know the entire story, but it sounds like you're really exposed here, and the downside is losing the asset (this house). Are you able to weather that loss? You have more options than you may think. __________________ B Save Early, Save Often Save Before, Save After Two-Star General, Spelling Soldiers -+-+-+ Give 'em a hug one more time. It might be the last.

03-05-2011, 09:53 PM	#4
Felix The Assassin The Dreadnoks Join Date: September 27, 2001 Location: Orlando, FL Age: 61 Posts: 3,608	Re: Issue that I could use advice on B is on to something here for sure. Property management is the only way to go when it's a long distance rental. __________________ The Lizzie Palmer Tribute Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe to assure the survival and the success of liberty. John F. Kennedy 35th President of The United States The Last Shot Honor The Fallen Jesus died for our sins, and American Soldiers died for our freedom. If you don't stand behind our Soldiers, please feel free to stand in front of them.

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