Tenant/buyer not paying payments on a wrap loan

[Shireen Y.]

Hi all!

I have been dealing with a buyer (now considered a tenant since he's defaulted on his payment so many times) that has stopped making his payments. I have been told by a local attorney that I could evict him, but that he would still have the option to purchase the property in 2025. Apparently, the Home Purchase Agreement and Lease Agreement that I have with him are two separate contracts. My hands seem to be tied but I can't help but think that there has got to be a way out. If anyone can advise or refer me to anyone that could help, I would greatly appreciate it! 

[Curt Smith]

For others who read this thread.   Pay for good lease option education that comes with good contracts.  Find these folks on youtube via searching "lease option" "subject to" "wholesale lease option" etc.    I like Joe McCall,   John Jackson (esp if you do deals in TX but good everywhere) and otehrs.

My Option contract says;   the lease but not be in default.  If the lease is in default the option to buy is void.

Thus, for me, a tenant who is behind on the rent has no option to buy.   State real estate contracts protect the broker NOT the investor/owner/seller!!   I'm sorry to see this.   Your option to buy contract MUST say its void if there are arears in the lease.

have the cash for keys discussion.   Tell him that it would be very bad for him finding future housing if you filed eviction, just filing will nearly permanently prevent him finding good housing.

BTW the poster did not give numbers re his arears.   IMHO if >2 mo behind, he's in default on (my) option to buy contract.  

Best of luck, curt