Legal Question in Real Estate Law in California

Lease Option to Buy?

We have rental property with a $2100 rental income, $200,000 home equity loan. The $loan is not transferable. We need 75,000 and there is at least that much equity. Can we sell with a 75,000 deposit and carry the $200,000, make the payments and transfer liability?


Asked on 12/05/07, 8:50 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Lease Option to Buy?

Youare breaching your control with the lender. The Home Equity loan is secured by the home; if you actually sell it then they are entitled to demand full, immediate payment, even if the loan were assumable. Also, why would anyone put down $75,000 for a lease option on any house. The reason they are not buying it outright is because they do not have much money and can only afford to pay a little more than rent.

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Answered on 12/06/07, 12:55 am


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