Notwithstanding the foregoing, the credit : required by this subsection shall not apply to the exercise by a : private mortgage guaranty insurer of its subrogation rights against : a borrower or other person liable for any deficiency[0].The problem with Texas, they do not address the Short Sale scenario specifically.

If you exercise the option before its expiration, you get a credit of the option money (and maybe some of the rent) toward the purchase.

Are you asking how to place this T/B in another house you have or will acquire for them or are you trying to get them to be able to stay in the current home that they have 30 days to move/exercise/buy?

It would be an exercise in futility anyway.

I want to be able to exercise the inspection contingency to pull out of the deal if need be.

Lease option means you do not have to exercise the purchase at the end of your term but the owner does have to sell to you if you are ready to purchase either on or before the close date.How much money down are you prepared to put down if needed?

if you do want an option to purchase, and in fact you exercise it, it's your choice how to pay for it (cash or mortgage).

These folks like HOAs because they can exercise power over their neighbors.I grew up in a tiny town in rural MO.

When your end-buyer is ready to exercise his/her option, then you can also exercise yours, and handle both closings.

I also have a few mentors who did some research on this over a period of 1-2 years (a while back), and they found that the only times the DOS was exercised was when the mortgage stopped being paid, the taxes stopped being paid, or the insurance got canceled.