OfflineHello folks.
I have always wondered about something about a SLO. What happens if you have a Tenant/buyer and he/she is making the payments.
Is it possible that the Seller will collect the rent payments from the tenant/buyer and not even pay their mortgage/lender? What would happen if that scenario plays out? What would happen to your SLO deal?
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"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
HAHA that is why you hire a third party to collect the payments and distribute them where they need to go. they will make sure the mtg gets paid and the lessor gets his/her money.
the tenant buyer would pay the third party. that way if the t/b doesn't make a payment everyone involved would know it. this also serves to show the correct and exact date the t/b made the payment because as you now they must be on time. everytime. because they are trying to rebuild there credit.
hope this helps
WALT
Thanks Natchez. So who would more than likely be the 3rd party? The RE attorney? Title company?
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
depends on if your state uses title companies or attorney's. my state uses attorney's.
best of luck to ya
WALT
An escrow company will do that for you. It used one where the tenant buyer paid the escrow company and they paid the mortgage directly to the bank and what was left came to me. It did not cost that much to set up and the monthly fee was worth it. Doing it that way will insure the mortgage payment is being made.
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To make sure property taxes and insurance get paid?
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Good stuff folks, thank you!
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain