Kevinanne, Home Seller in Kennett Square, PA

We were holding a second mortgage in a "lease to buy" agreement and the buyer now can't buy

Asked by Kevinanne, Kennett Square, PA Fri Aug 14, 2009

it. Should we proceed with legal actions pursuant to the agreement to recover the outstanding rent? Or just drop it and short sell. I have a daughter going to college in 2010 and am worried about ability to get financial aid.

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Kristina Zack, Agent, West Hartford, CT
Sat Aug 15, 2009
This looks to be a legal question and you should advise a Real Estate Attorney to know what the best direction to step to is and how to go about the legal actions of this agreement. Good luck!
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Minna Reid, Agent, Trumbull, CT
Sat Aug 15, 2009
This is a little unclear...
But I gather your are renting out your overleveraged property and the tenant - buyer has stopped paying?
And you dont know whether to keep the property or just short sell it? However the main concern right now is your credit.
Theres a lot of details missing here for anyone to truly advise you properly, however yes a short sale is higly likely to have a negative impact on your credit. If your lender is one of the few that will do a short sale before you miss payments, you may be able to limit the damage.
Is it worth it to short sell? That all depends on how severely this property impacts your financial situation, how much negative equity you have and what your other options are at this time.
Web Reference:  http://www.homesbyminna.com
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