AITD Questions / Seller Financing
I have a property with a tenant buyer in place. This property was my primary residence in the past so it has a very nice 30 year fixed mortgage. The tenant is very interested in purchasing the property but with all of the restrictions in place he isn't able to get qualified. Normally I would say "to bad so sad" and move on collecting another option payment from someone else BUT, this property is 2500 miles away. I would rather sell it so that I can focus on picking up properties locally. His payments have always been made on time so I am considering doing some type of seller financing such as AITD. The mortgage balance on the house is somewhere around $190ish @ 5.25% the sales price on his option is $230. I'd like to set something up where I finance the $230 @ 7-8% pocketing the difference between my mortgage payment and "his" mortgage payment.
To get to my question; has anyone ever successfully completed a transaction such as this? What kind of terms would you suggest? I read somewhere that you could set it up where if they missed even one payment you could foreclose and the deal was done.
Any advice is appreciated.
Thank you