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Updated about 6 years ago, 10/08/2018

User Stats

15
Posts
1
Votes
Kim Horn
  • Sweet Home, OR
1
Votes |
15
Posts

Lease option question: Market downturn

Kim Horn
  • Sweet Home, OR
Posted

Let's say I use a lease option on a house that I own. I set it up for the tenant/buyer to purchase the home after two years of occupancy at its current appraised value of $250K. Then the two years is up and the market value of the home sinks to $175K. The bank will be unlikely to lend based on the old appraised value. What happens to the contract that I have with the purchaser of them home if the market value drops significantly?

Thanks!

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