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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 42865
Experience:  Texas Attorney for 30 years dealing in real estate
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Should I sell a home ,000 to elderly buyers (81 and

Customer Question

Should I sell a home for 170,000 to elderly buyers (81 and 72 ).They want me to carry the mortgage at 5% and they will put $40,000 down. I think it is risky to say the least. They are my tenants in a home in PA and pay $1300/ month. They have not missed a payment but I think they want to reduce their monthly payment. I would carry the mortgage for 8 years and then require a balloon payment. Obviously they will not be able to go to a bank and get a loan in 8 years so this concerns me. They both still work. She is recovering from hip surgery.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Ray replied 2 years ago.
Hi and welcome to JA. I am Ray and will be the expert helping you tonight.
I agree with you that this is risky and you don't really want to carry a note like this with folks in this age group.All the issues you raise are legitimate ones.
Since they likely cannot get regular financing your plan to get them out is the way to proceed.Once you get them out you can sell it and make buyer get their own financing.
The odds of them being able to resolve the balloon in 8 years is a valid concern and a deal breaker to me.
The lawyer was correct you need a different buyer with their own loan here.
I think you had the right idea to get them out and sell it to a buyer with their own financing.You are a pretty smart seller and you got good advice here.
I appreciate the chance to help you tonight.Please let me know if you have more folow up.Thanks again.