So I am close to closing on my first deal. I am set to close on Aug 15.
Here is the problem though. I am currently in a 1 yr lease that ends July 2018. I renewed it a few months ago and this deal on this house just fell in my lap last week unexpectedly; it was too good to pass up, so I put an offer in and it was accepted. I could live in it and rent out the other rooms and it would cover the mortgage and utilities and then some. Originally, there was no problem because I planned on breaking my lease, and being liable for paying my half of the rent until the property management company rents out the apartment, or 1 year comes around, whichever came first (it shouldn't stay on the market too long though). It normally wouldn't be a problem because of the amount of overtime I work, I would be able to float both properties for a year even without renting the rooms. But this gets me in the door and I can still save money every month.
Here is the other catch. The lender wont accept my overtime as steady income as I have started this job only a year ago, so they are going off of my base. However, there is more overtime available than I and everyone in my office can work. What it comes down to is the lender is saying that with my base I cannot afford the mortgage and rent and therefore will not receive final approval on the loan. I didn't know, nor was it mentioned to me when filling out the application (in person with the loan officer), that the lease would count against me (though now thinking about it, I should have been smarter). I did mention it was an one year lease too.
So after trying to negotiate with the current PM, I am left between a rock and a hard place. The PM refuses to work out a deal on terminating the lease early (I've offered many deals that would favor them).
I am currently trying to work something out with my lender but they said it's not likely going to happen.
And on top of all this, even if this deal doesn't work out and I back out of the contract on the house, my current roommate still wants out of the lease, putting me in the position to take on the whole rent. The worst case being that I decide to go for the deal on the house and try to work things out with the lender just to find out before closing that things wont work out, then being out of a house and an apartment/roommate.
I have to make a decision in by close of business Wednesday. I'm waiting to hear from the lender to see if we can work something out but it is unlikely.
The things I have tried to do is:
Re-negotiate my lease from 12 months to 3-4 months at a higher monthly rate. PM said no.
I'm actively looking for someone to take over the apartment (not sublet but a new lease, because sublets are not allowed). In addition, I stated I'd be willing to pay for someone to take it over for the by giving them cash, thus absolving me from the lease liability.
Asking the lender if I can buy out the remainder of the lease, and add it into my mortgage. (Still working on that, I do not have a lot or spare cash for this so adding it to the loan is really the only option.)
Asked the roommate to take over the lease and look for a new roommate, and I will continue to pay my half of the rent till they find a new roommate.
I am really at a loss for what to do. I have been working tirelessly to make this work. I can't think of a way to make it work out. It looks like I will have to back out of the contract, and hopefully my roommate will stick around and continue to rent the apartment with me (although they kind of strongly dislike me for the whole situation, though I cannot blame them for it). Maybe I'll try again in a year.
Sorry for the grammar and spelling mistakes.
