Quote from @Jay Hinrichs:
1. Lennar is either 1 or 2 in size in the US DR Horton is the other.. they are production builder so yes quality is not their hallmark.. price is ..
2. wrapping the mortgage could certainly create an event of default with Lennars lending arm. there by trashing your credit.
3. if your buyer stops paying you have to keep paying and foreclose and hope they have not trashed the home when you get it back..
like all things creative finance wise sounds great on paper and is great if it all goes perfect but lots of things can fall apart if things do not go right.. so what is your fico score worth ?
Now if you have the cash to pay off the underlying loan at anytime if there is an issue then your risk goes down to is your buyer going to pay and if not are they going to trash it.. same issues you have with any tenant.
Well if I had a Tenant that trashed the property I would use their security deposit to repair the property. And if the damages exceed the security deposit I could take them to court to try to collect funds from the tenant. However in the creative finance case I'm not sure I can do anything to recoup money for repairs if the Tenant trashes my property.
Also I assume if I foreclose on the buyer I would also have to pay back their equity, so that would be an extra cost
