Agent

Should rental house investor sell to tenant?

Follow these steps before sealing the deal

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DEAR BOB: I have a tenant who wants to buy the rental house where he lives. He is a self-employed licensed general contractor. He wants me to carry back the first or second mortgage. That's possible because I own the rental house free and clear. But I have held mortgages before and regretfully had to proceed with foreclosure. Then I discovered the property taxes were unpaid and I had to pay them to prevent a tax sale. Since my tenant is self-employed, if he neglects to pay the property taxes or his income tax, payroll tax and withholding tax, will any of these take priority over my mortgage? – Bunny H. DEAR BUNNY: Your first step should be to get the prospective buyer to provide you with a copy of his credit report and FICO (Fair, Isaac and Co.) score. He can obtain this at www.myfico.com for $12.95. If his FICO score is less than 620, you have a high-risk borrower. Purchase Bob Bruss reports online. Presuming he gets past the credit test, your second step should be to write u...