Original Owner wants to Buy House Back

[rlj002]

I am a new investor. I recently acquired a house in Texas from another investor who lives out of state and couldn't get it sold. The house was purchased (by the 1st investor) subject to the existing mortgage (a year ago). The house is in a land trust was assigned to me as beneficiary.

The orginal owner (divorcee) now wants to buy the house back. What is the best way to structure this deal - as the mortgage is still in their name?  ...and have full recourse if they moved in and defaulted on payments to me?

In addition, is there a way they could (streamline)refinance the first lein?

The principal balance is $84,000 and they are willing to pay $115,000 w/$5,000 down and $1,200 a month. Current PITI is $1,035. I am thinking of an interest only loan for 3-5 years - until they can refinance and cash me out.

[tedjr]

How is the deal going. Have not talked in a week or so. Let us know if you have more questions or need more help with this. There are some really smart folks here that have seen almost everything.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[dgpioneer]

You own the home although they own the loan. You can sell through a CFD or LO.




dgpioneer@juno.com

[rlj002]

I am doing a LO.  As a new investor, I am more comfortable with this process right now.  Thanks for both of your inputs.  Stay tuned.  I hope to have this person back in their house Feb 1.