You want to be sure the seller is truly committed, since this mortgage remains on their credit report and is their responsibility until you pay it off.If you commit to sell the property at $175K, the appreciation belongs to your buyer's, not you.Have you personally verified the $175K price?

Okay here goes...........So on one of my apartment buildings I owner financed with a seller I was added as an additional insured.The seller checked with the insurance company weeks before we closed and they gave their blessing.Now the policy is coming back up for renewal in March of 2012.The owner of the property insurance company is now up in arms saying his employee didn't give the seller the correct info and that unless the seller shows ownership he can't renew the policy in March.The reason he said is insurers do not like to see additional insured because they think someone will commit arson and burn them down and make a claim.These buildings are 30 years old and it's hard to find another policy that is not very expensive for them because the policy was written and renewed each year before they hit the 30 year mark.Many new insurance companies won't touch a building that old unless all wiring,plumbing,roofs,etc. have been replaced so their will not be many claims written when they underwrite the policy.If the insurance gets cancelled in March then the underlying mortgage company would be notified which we don't want to happen.The seller has talked to her attorney (not the closing one) and have mentioned something about titling the property back to the seller but have an agreement stating I still have ownership in the property.I am not comfortable with that solution at all especially after all the work and money I have put into turning these properties around.The other option the seller mentioned is cashing her out of the 2 buildings early coming due in March for the insurance policy and then the other buildings don't renew until end of the year 2012.I am open to suggestions.Per the agreement I have years before I have to cash out the balloon note.

Even if it's totally legal, why put yourself at the risk that one of the parties might later come back and sue you for some "error" they think you may have committed?

Somehow they think that giving me a longer commitment and, perhaps, a more difficult time terminating their tenancy makes them more appealing as a tenant.

Regarding "If she is buying before that time she is most likely committing loan fraud and will end up in prison..."

He's spending a ton of money, but something motivated him to commit to spending them money when he bought them.

We are 100% committed to it.

The idea being that they don;t want the tenant committing for more rent than they can pay and getting in over their head.

Also, you are not committed until the final approval which is once the bank has accepted the negotiated offer which can be a few months so at least get the ball rolling and then worry about the financing later.

I was commited to shoot through the wall if I could pin point them.