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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31789
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Hi I would like to get some advice. I own a house that I rent.

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Hi I would like to get some advice. I own a house that I rent. The rent I receive covers the mortgage and taxes. The insurance and water bill come out of my pocket. I have a 380 thousand dollar mortgage. I have been wanting to sell it because the only reason I have it is because my mom passed away and I had to buy it from her estate.I live in Howard Beach and was hit very hard with hurricane sandy. My home is right next door to my rental, both houses 1st floor was destroyed. I did not have flood insurance because I am zone X. I took out flood insurance on both homes after sandy.They are talking about changing our zone to zone A which means instead of paying 400 dollars a year for flood insurance it will go up to 10,000 dollars a year. My home in which i live in was reinfested with mold and I am in the process of having the mold removed a second time and rebuilding a second time. I am a widow and I cannot afford all this. The home in which i want to sell is probably infested with mold again to. I ave someone that is interested in buying my rental. The can't get a mortage because he doesn't declare everything on his taxes. I also forgot to mention that the rental was renovated about 13 years ago and the c of o was never completed because it wasn't in code with the building dept. so the c of o is open until I do work to get it approved which would cost me about 15,000 dollars. This person who wants to buy it wants me to continue to hold the mortgage and keep it in my name and he will pay the mortgage every month plus give me something towards the Note. I will be selling him the house for 600,000 the mortgage is 380,000 and then the note would be $220,00 dollars, and if he defaults then I get the house back. He will be responsible for the insurance and everything else as if it was his own house. Could you please tell me if this Idea could possibly work? Is it risky for me, thank you
Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Yes, this is possible, and it's actually not very uncommon.

This is usually called a lease-purchase agreement, which basically means that the owner leases the property to the buyer for a certain period of time, that the rent will be applied to the purchase price and that at the end of the term, the owner will issue a deed to the buyer for the property. Since the property has a mortgage, the agreement would need to say that the payments from the lessee/buyer will be paid over to the mortgage company until it is paid in full.

You should be able to get a local attorney to draft a lease-purchase agreement for you at a reasonable cost.
Customer: replied 4 years ago.

will he be responsible for all the bills and if something breaks in the house and so on. Will he be responsible for everything as if he owned it. What is he defaults in any payments?

Who pays for what - - repairs, etc. - - is a matter of contract for you and the buyer to agree to.

If the buyer defaults, then you cancel the contract and keep all of the money paid over as rent.
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