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Updated over 14 years ago,
Profitable house to sell before I claim Chapter 7
Hello, I have a nice SFR rental in CO that has a great tenant on a 3 yr Lease Option with $24K built in profit (worst case) once they buy. The balance owed is $139K, the home value is around $165K, the tenant is paying $1150 on a 3 year option. I am claiming CH7 and don't want to screw them over as they've already been there 10 months and are great tenants. Can I sell the home before claiming BK? If so, how do I let the potential buyer know that there is about 2 months in back payments due and that I want to ensure that the tenants lease options stays in tact?
If an investor would buy it with a 6% loan the deal would look like this;
$145K purchase price (if I could get something out of all of my years of work on this home) at 6% would be around $989 PITI. The renters are paying $1150/month leaving $161/monthly cash flow. The deal is set to sell to the renters within the next 2 years at an agreed upon price of $163K. This leaves a great return depending on how much the new buyer puts down, etc. Any ideas thoughts if I can legally sell it before BK, if anyone can advise where to try to sell something with this scenario, etc.?