HI Wendy,
I am not sure exactly what you want to do. If you want to modify your exisiting loan to be able to rent it and qualify for your new mortgage that is an option. A few things I would be aware if you are renting out your existing home most lenders will not accept leases anymore so you will have to qualify with both payments until you have reported the income on your tax return. I see also that you are condisering maybe you are considering to short sale your exisiting home and renting a new one which again is another option. Just be aware short sales are better then forclosures on your credit report because they are shown as paid in full. Good Luck and feel free to ask more questions, I know this is a tough time.

Melissa
Ameritrust Mortgage and Loan Modification
561-716-0792

You need a Real Estate Attorney
to draft the paperwork, and possibly set up an escrow account.
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Is it an OPTION to Buy, or is it a CONTRACT to Buy?
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What amount of the Rent, if any, is applying toward a Down Payment?

Many Renter/Buyers assume that all of the rent is applying toward a down payment,
when in fact, none of it may apply.

It all depends on what is written in the Option Agreement, or Contract to Purchase, between you and the Renter/Buyer.

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If some of the money will apply to a Down Payment,
the Buyer may want it held in escrow by a third party.

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Is there an existing Mortgage or Mortgages or other Liens on the Property?
The Buyer may want some assurance or proof that the payments are being made.

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Will you the Seller be Owner Financing this at the time of Sale,
or will the Buyer be getting New Third Party Financing (Bank or Credit Union Loan)?

If they plan to get a New Loan, have they been Pre-Approved by, or at least met with, a Lender?
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What about the Existing Mortgage - is there a Due on Sale Clause that might be triggered
by your agreement? If your Present Mortgage Holder considers the Option or Contract to be a Transfer of Ownership,
it may trigger the Due on Sale Clause in the mortgage (the entire Loan Balance is accelerated and due immediately).
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Likewise, if the Property Appraiser deems it to be a change of Ownership,
you may face Property Transfer Taxes or Intangible Taxes.
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Who will insure the house?

Does the Tenant need Renter's Insurance to cover their private property?

What if the house is severely damaged by a storm or a fire - is there a provision for that?

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What about the Lease Agreement during the time of the Rental?
Who mows the lawn, who changes the Air Conditioning Filter,
what if the Hot Water Fails or the Pipes Break or the Roof Leaks?
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What if, on the scheduled Date of Purchase, the Buyer is not able to perform?
Do they keep on being your Tenant?

What if the Buyer Defaults, or what if he "walks away" - is there a Security Deposit?

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*** Again, see a Real Estate Attorney ***

There are serious consequences involved.

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Best wishes,
Fred
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Hello Wendy,
Is there a specific reason you want to sell your home?
Is it because you can no longer afford it or something else?
Depending on your situation there are many different scenarios to consider...

I am actually a Realtor in Lakeland Florida and if you have any questions or would like to speak about your situation please feel free to contact me..

Darren Moreno
NuHomeFinders Inc
(863)-409-7766
Email: HouseofRealEstate@gmail.com

Have you tried a loan modification, if not you have nothing to lose by trying. As far as renting with an option to buy--do yourself a favor speak to any local Realtor and most importantly an attorney --depending on your credit and with whatever you decide to do with your current property renting with the option to buy is probably not option for you at this time.

Anna

Wendy, though question to be answered without all financial and Lakeland's market information. There are several directions you could take though. Wiser one? Talk to a real estate professional. Rent to own is not an option I would recommend, unless, you have legal counseling (an Attorney) on your side first.