Need advice on lease option buyer who wants lower payment

[Jean T.]

I have a pending dilemma that I'm hoping someone on BP can help me with.

I have a lease option buyer (married couple) who was due to exercise their option in a couple of months. Just got a call from them stating that one spouse has been laid-off, and they will be unable to exercise the option. And they won't be able to consistently pay the rent at the current rate. So they want to negotiate a lower payment.

Any ideas on how I should best approach this?

One option I'm thinking is that I can simply tell them no, and take back the home to find another buyer. Another option is to accept a small rent cut, renegotiate a longer option period, and put clear and harsher penalties for any missed or late payments.

Any thoughts?