Carolita,
Depending on your goals in this transaction you could actually owner finance the home. Now to do a transaction such as this you need to have an attorney draw up all the documents. You can make the term short term with a balloon payment so that they will refinance the home shortly down the road. I would structure the deal so that you hold onto the deed though. That way if down the road something goes wrong it will not be a long drawn out process for you to take possession of the home since you technically already still have it.

1st have them try to get a loan. There are some mortgage companies out there that will work with credit scores as low as 580. If you need some names for those lenders please feel free to contact me. If they can not get a loan you could offer to do a lease purchase with them a realtor could draw this up for you but a attorney would have to seal the deal on that. That would protect you in the event that pull out of the deal in the futher. If I can help in any way please let me know.
http://www.annettedemershickoryagent4u.com/

Hi Carolita,

I have a strategy that has worked well for many investors that I work with. You require your buyers to go through a credit education credit restoration program it's $399.00 per client. After 4-6 months typical results are a 150 point recover to their credit score. At that point you can walk the tenants over to a mortgage broker of your choice and have them apply for financing and cash you out. You can do this through a rent to own or a lease option. I would prefer a rent to own so the tenants do not record the lease option contract and mess with the title. I do hope this is helpful to you and it's a fantastic win win for all parties.

I would be careful about extending a second mortgage to them because if they default on the first mortgage than you get wiped if the property goes to foreclosure.

You can of course offer seller financing to the tenants as well and then sell the note so long as the yield meets what the note buyer requires. Good luck!

Carolita,

Anyone can apply for a mortgage. I would recommend that they do to see what situation you are really dealing with, specially since they say that they want to buy it from you. If they do not qualify, I can let you know about how long it would take for them to be able to get a loan and that way you will be able to decide if you want to sell it now to someone else.

Best regards,

Andres Gomez
704-488-4296