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Thoughts on a rent back?

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tgrantly
Valued Member

Thoughts on a rent back?

Anyone close a deal and rent back to owner for a few months? Any buyers remorse after basically wish you waited to find something else?

Any financing issues with a rent back?
Message 1 of 11
10 REPLIES 10
DeadSpider
Frequent Contributor

Re: Thoughts on a rent back?

Rent backs are done all the time, BUT it must be in the contract and the buyer & seller have to agree for how long and how much.

No financing issue as your out of a loan and no longer owe a house. Typically you'll need 640 FICO or less for VA and 2 years of job history.

Message 2 of 11
Jess21
Frequent Contributor

Re: Thoughts on a rent back?

My mom just did this.  She sold her house, it was an all cash buyer and they requested an extra 30 days after closing bc she was moving to another country and needed time to get everything ready.  They agreed and she paid a month of rent to the new owners. Smiley Happy

Equifax: 676 (myfico) Experian: 683(myfico) TransUnion: 689 (Barclays)

Current Goal: 700
Message 3 of 11
Anonymous
Not applicable

Re: Thoughts on a rent back?

I actually did this when I bought my first house. The seller had paid the house off and was going to use the money from this sale to purchase a new, smaller home down the street cash. The only issue I had was when it came down to moving in myself. When I got there, the seller had taken the blinds down, left a huge mess inside of the house and was pretty rude. There were no serious issues though (other than the blinds which my agent later told me was not even allowed). I just changed the locks out, cleaned up and moved into my new house. It does need to be in the contract and very specific. We had monthly rent amount and move out date all in the contract so that there were no surprises. Not a horrible experience but it was a bit weird owning a house and not being able to live in it! 

Message 4 of 11
tgrantly
Valued Member

Re: Thoughts on a rent back?

no blinds? what in the world.  That is rather odd.

Message 5 of 11
DallasLoanGuy
Super Contributor

Re: Thoughts on a rent back?

i just bought.

rented back for 14 days to help out the seller...... they needed their money for a purchase.

 

worked out fine.

 

your realtor might have some horror stories.

 

Retired Lender
Message 6 of 11
StartingOver10
Moderator Emerita

Re: Thoughts on a rent back?


@DallasLoanGuy wrote:

i just bought.

rented back for 14 days to help out the seller...... they needed their money for a purchase.

 

worked out fine.

 

your realtor might have some horror stories.

 


^^^True, but it usually works out well. Every once in a great while a seller does something unexpected (like take the blinds as mentioned above), but generally a seller with post closing possession is fine. Make sure you have the paperwork right. It is a more civilized way to close IMO, that way the seller doesn't move prior to closing which can be a risk for the seller.

 

It is far worse to have a tenant in possession than a seller. That is where the horror stories occur....Smiley Sad

Message 7 of 11
DallasLoanGuy
Super Contributor

Re: Thoughts on a rent back?

biggest downfall....   the seller needs the money to close on their purchase..... and they get denied last minute...... DOH!!!!!!!!

 

Retired Lender
Message 8 of 11
StartingOver10
Moderator Emerita

Re: Thoughts on a rent back?

Congrats on your new home Dallas!  Hadn't seen you around and thought you may have been busy with loan apps...not moving.  Smiley Tongue

Message 9 of 11
DallasLoanGuy
Super Contributor

Re: Thoughts on a rent back?

thanks.... 

 

 

Retired Lender
Message 10 of 11
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