I have a sfh in north las vegas, neg. C/F of 100. Upside down on purch price. What to do?

Should i keep renting out or offer renters lease to own since they like the house? How can i ask them to accept a higher purch price when i owe more now than its worth?
In Selling Property - Asked by Gail N. - Dec 1, 2010
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Kevin S.
San Diego, CA

Unless they are willing to pay a higher price sell it. Lease to own will be too complicated since you will never be able to pay off the loan, unless you are willing to come out of pocket the balance. In which case I suggest you let the bank do that. If you can afford the payments hang in there. Most people push the panic button when prices drop and sell sell sell. Those that can hold out are the ones that prosper. Or do a short sale and work on fixing your credit within a 6 months to year. and buy while prices are still low.

Dec 1, 2010
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Zeke S.
Chesterfield, MO

Are they able to secure their own conventional financing? If not you could justify a higher price since you are they lender and they cannot secure their own financing. You could also convert them to a lease and separate option to purchase agreement which may move them further in the direction you want if you make that option to purchase a requirement for a new lease. Take the option to purchase money in lieu of or in addition to any security deposit.

Dec 1, 2010
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Eldon T.
carlsbad, CA

W/regard to price, I would say. "This was the price I paid for it and would be glad to offer it to you at that price, w/me as the banker" and doing a contract on the property w/terms and conditions to cover one's expenses of PITI. Basically, you're doing a "wrap TD" on the house.

Dec 1, 2010
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Adam B.
Chicago, IL

Hi Gail, You can apply for a principle balance reduction which would bring your balance down to or below market value. Then you can lease to own or just sell outright its up to you. It may take 6 months or more but it's better waiting 5 years or so to see if your property value goes up.
Thanks Adam T Barrera

Dec 7, 2010
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