BiggerPockets

I would tell them to take a hike if they outright refused. They are trying to hide something.

This is definately trouble. Does your existing mortgage have a alienation clause (cant transfer title without paying off mortgage)? That can also cause problems...

There are countless threads on the due-on-sale clause on the forums. I suggest you read them to see what everyone thinks.

The general consensus is that you should inform your lender and not doing so will make your note callable in the future. What would you do with your financing if the bank DOES call the note when market interest rates rise? You will have to refinance your financing and will be upside down with the gangster terms the lender gives.

If you do wrap around your note make sure you get a short balloon so that you can make adjustments as the market changes.

I agree with Bryan. The problems in my opinion maybe the fear of identity theft or there pulling your leg and cant afford the property. I do my fair share of owner financing and hear regularly "Were going to do a back ground check on you to be sure your a legitimate business." My responds is "please do"!!!! I would walk away but if you choose to move forward maybe having a property manager handle the confidential information would make them feel more comfortable. Thats if you even want to be bothered with the deal anymore.

LeJonR

Forgot to mention with the lease you are just evicting and keeping the money if they don't perform.

I would make the payment down at least 8 to 10 percent.

How is South Carolina performing?? If the market is dropping by 1 percent a month then it might not be a good idea to lease option as if they don't buy you now have to sell for a lower price.If trends show going up then you could get more in the future if they default.

A local broker should be able to show you a trailing 12 month to 3 month status report on similar sold's to give you a history.

what bank is it? reason i ask is if you get on a phone with a chase representative, their standard canned answer is "you can't do that, and we'll call the loan due." if it's a smaller bank where you can talk direclty to somebody with authority, there's ways to word it correctly so that hopefully they'll say, "no problem." a contract for deed is basically a more sophisticated lease option...the title stays in your name...why not just sell and move on? sounds like you have some equity, so that you may not have to take a loss...basicaly youcould sell and leave teh table with a decent check...owner financing is a huge hassle...are you prepared to make the payments for 6 months if your buyer isn't paying and you have to foreclose on him?? what if he trashed the place and you then have 10k or more in damage??

It is called the golden rule...you have the gold so you make the rules!

I finance at 8.5% for what it's worth.

BTW....CFD or even a lease for longer than 3 years violates the due on sale clause too. Keeping title in your name doesn't ensure that it isn't a "sale" in the eyes of the law.

2% on 250k is barely more than first month, last month and security on a $1500/mo rental, they are tryin to hose you.

It's a buyers market for sure, but they are NOT buyers if they are looking for owner financing, ball is in your court. Cover yourself.

I wouldn't call them at all. Move on to look for the next buyer. When they finally call you tell them they can provide info or kick rocks!

My goodness, are you serious....2% down? That's not a down payment, that's closing costs....maybe!

I have been pretty creative to obtain 10% down in a short period of time, cross colateralization with other assets comes to mind.....no way do you do 2%!

Any buyer can contest your foreclosure action, regardless of what contract you use, you can easily eat up 3 grand with an attorney just to get a house back, 6 months missed payments....if you can't cover the foreclosure expenses from a buyer in a seller financed deal, don't do the deal. Good luck...