Close on house and lease back to previous owner?

[sl1c3r]

We made an offer on the house. Our closing is flexible -- 30 days, 60 days, whatever..

Our agent said the current owner wants to close in 30 days and lease for a month. Not sure why they wouldn't just close in 60 days.

I want to say I heard somewhere (Dave Ramsey maybe?) that it can be bad to do something like this (buy a house and allow previous owners to stay a month or something).

Whole thing seems weird to me..

Any thoughts?

sl1c3r

[JoshuaHeckathorn]

If you're financing the purchase, your lender will probably require you to sign something that says you're buying the house as a primary residence. If you close and then rent it out to anyone else, you're technically breaching the terms of your contract.

I would rather just close in 60 days and not deal with any of it. It'll probably save you a lot of trouble.

[shanecurran]

If you have a first home-buyer loan, you are not supposed to buy for a rental property. I agree with Joshua, I don't see the benefit of renting, just make the closing 60 days from now. The only reason I can see for the previous owner to rent for a month is because the rent could be lower than the mortgage.

[frugalgirl]

This could turn into a can of worms.

If you don't want to be a landlord, don't do it for even a month. What if they won't leave and you have to go through a long and arduous eviction process?

I would never agree to this.

[creditcardfree]

No...I would not do this either. Close in 60 days. Walk through before closing to make sure they are out, if not...don't close.

[sl1c3r]

That's pretty much what I thought. I have no desire to be a landlord right now.

Thanks for the replies!

[rj.phila]

in most markets, the legalities of eviction allow a tenant to draw the process out for up to 12 months, TMK. terrible idea. could open yourself to a true nightmare.

beyond this leasing option, which you should DEFINITELY not cave on, you should now consider yourself warned. this transaction has already moved out of the parameters of "normal", i.e. watch your ass w/ the seller from here on out.