12-02-2009, 12:15 AM
Doc wrote:
If B's credit is good and he's got the money, why not do it as a purchase of the home by B with the loan solely in B's name, followed by a lease of the premises to A with rent sufficient to cover B's loan payments, taxes and insurance?
B's credit is excellent and he has a steady income to take care of the mortgage payment that includes taxes and insurances but B doesn't have enough for a down payment and the loan he qualifies from the bank isn't that much more. Hence comes A's offer.
Doc wrote:
Consult an attorney for the fine-points, but the lease agreement can be structured to mimic the effects of one of those other arrangements with rules for assigning the burden of maintenance and the results of improvements, automatically renewing on the same terms (or making amendments) and giving A the right of first refusal if B decides to sell the place.
Good point!