Lease option to sell/owner financing question

[Germain Mopa]

Hi All -

I have a situation regarding selling my property. I am selling our duplex (one unit renting for $1100.00/month, and the other was owner occupied by us) due to relocating my family to the Atlanta GA area.

After a month of our house on the market, we went under contract with a buyer who appears more than capable of buying the property, but here is the situation:

Buyer has her house on the market - so has an existing morgage

Buyer has $100k to put down as a down payment (selling price is $404,500.00)

The buyer just told me that after the loan officer told her she could get a loan based on her finances, the loan application got denied because the property is a duplex. The buyer is still very interested and really want the house. The buyer asked if we can be open to sell to her where she puts down a sizable down payment and we can charge her above market rate. She plans on selling her house within couple months (no guarantee there I understand), then payoff the loan with us within 6 months, at least that's her plan.

We still have a mortgage on the property 65%-70%. I am open to deal with the buyer, not sure if I can work an owner financing because of the mortgage. If we do a lease with option to sell, what's the best way to protect ourselves? Buyer putting a big chunk of money as deposit/non refundable?

Any idea will be much appreciated.

Thanks in advance with your responses.

Germain

[Brian Gibbons]

A Delayed Sale and Purchase Agreement with the rights to lease is the way to go,  Delayed closing in say 6 months.

Use an attorney.

@Germain Mopa