General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago on . Most recent reply
Lease option question: Market downturn
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!