Hi...We had to short sale two properties when the market went down with the result that my husband's credit is not at that stage where we can invest in our own home. However, we are tired of paying rent especially given that our family expanded last year and we are expecting our second baby this year.
Our current lease expires July and we are thinking of renting with the option of buying that property next year when my husband's credit scores pick up which will be in March.
My hubby and I currently have lease-to-buy tenants in the home we were unable to sell. So far, it is working out great.
Send me a PM, and I'll give you the name of our awesome realtor whose firm also specializes in lease-to-own properties in the Richmond, Virginia area.
90% of the time lease/rent to own agreements fail as by the time comes to enforce the ownership part; the buyers know more about the home and all it's inherent nuisances and flaws and decide it's not worth what was agreed upon, or still fail to qualify for a mortgage.
I suggest you first check to see if any judgements are recorded against you for the difference between sale and mortgage amounts. Sometimes the case.
If you are seriously considering entering into a Lease with an Option to Purchase, you should get a qualified real estate attorney involved from the very beginning - DO NOT go with some pre-printed forms the current owners may have found from either the Internet or other sources.
Lease w/h Option can be successful but every I and T must be dotted and crossed BEFORE either party commits to the contract. Get professional advice - if the first attorney seems "ify" about it, check with a second one and so on until you find a qualified attorney BUT, under no circumstances, should you enter into an agreement of this type on your own. Word to the wise and all that...
ETA: The attorney will, of course, get a preliminary title search report as REL suggested - just one more thing why you need to have an expert on your side while navigating something completely foreign to your experience. Bottom line, yes, "Lease with an Option to Purchase CAN work but only if you do it right from the very beginning. After the fact, it is too late to change terms....This message has been edited. Last edited by: Idaho Resident,
What I was suggesting pertained to her existing situation on her short sales.
I just did a short sale representing the buyer.. It was a cash deal and the sellers
made an agreement with their seller bank for a note, unsecured, as settlement. Sometimes, the case is a recorded judgement by the seller's lender against the seller for the difference between the sale amount and the amount that was owed on the mortgage at the time of sale. Other times..there is clear sailing.
Know that just because your lender accepted a short sale doesn't mean they will not look to recoup money owed on the mortgage.
You should have knowledge of this in your documents.
To reference this issue, you could pull your credit report for verification of judgement filed by your lender, and check with your local courthouse.
Just check to see to be sure of your position.This message has been edited. Last edited by: real estate lady,
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