Hey there, folks! So, here’s the lowdown on a situation I’ve got going on with a commercial property I own in Michigan. I’ve got a mortgage on it with an $80k balance, and now a buddy from my church community is looking to buy it off me for $180k. We’ve agreed on the price, plus an interest rate of 5% (same as my existing mortgage), and a loan term of 5 years, after which it balloons to the market rate.
Now, here’s where I could use some help sorting things out. The buyer will be responsible for paying the property tax and insurance, but the property is classified as non-homestead under my name, so the rates are pretty steep. I’m wondering if the buyer should reimburse me for the rates I’ve been paying, or if they need to put the property under their name to secure insurance and handle the tax payments themselves.
I’m also a bit worried about what might happen if the buyer defaults on the loan or fails to pay the property tax or insurance. Will I have to go through the whole eviction process as if it were a rental property? I’m hoping someone can shed some light on how to navigate these potential hiccups in the transaction.
So, there you have it, folks. Just trying to figure out the best way to handle this sale and make sure everything goes smoothly. If anyone has any thoughts or advice on how to proceed, I’d be super grateful!