I have a Purchaser who has made payment on a Promissory Note and Deed of Trust who recently thru her hands up and gave the property back to me. Now she want to continue to stay in the home and pay rent in the same amount as her previous mortgage payment. I am new to the tenant world but old in the mortgage world. Any advice from you sage Landlords would be very much appriciated...Jay
Do you just take the property back and forgive the debt? If my bank heard that I threw up my hands and tried to give the property back they would foreclose on me and ruin my credit forever. What kind of a mortgage company are you?
If this person is not responsible to pay a note she is not responsible to pay rent. Besides, your mortgage payment has nothing to do with how much rent will be paid. You need to research your market, find out what your place rents for and fix the rent. Maybe this person is not the one that should be your tenant. Again, if she can not pay the note, how will she pay the rent? Do not allow the tenant to tell you what the rent will be.