I have had this tenant for a year now. She fixes everything herself, pays on time etc.. We would like to sell the house to her and carry the mortgage. I don't see any forms for this and the option to purchase form does not fit. what recommendations do you have for me to get the right agreement and other things I may need to do?
1. Check current credit and assets on all tenants 2. All tenants are on mortgage 3. Set selling price based on market appraisals 4. Minimum 25 to 30 percent cash down payment 5. Your mortgage in first position till paid off 6. Fair market interest rate and amortization terms 7. Tenant must maintain taxes and proper insurance 8. Periodic physical condition inspections. 9. No renting OR HAVE STD assignment of rents clause.
Usually tenants who want to buy with seller financing have serious inability to qualify for conventional financing.
Be prepared to forclose and evict. Consider discounting and selling mortgage in secondary market from the get go to be done with it and the property and the tenant.
If you want to sell the mortgage it is important that it falls within proper guidelines and parameters.