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Lease to Own House?
Can you lease to own a house after filing bankrupcty? If so how much do you normally have to put down?
Public Comments
- depends on thel and lord
- Depends on the required downpayment of the seller involved. However, bear in mind that most of these offers expect you to finance the purchase within two years after you engage in the lease to own agreement. If your bankruptcy is recent, you won't qualify for financing in that two year time period. Thus, you would be paying a bunch of money down along with rent payments, and would lose the entire amount when you discover that you can't buy out the home as agreed.
- Have an attorney help you out with this. Also, be aware that any "Due On Sale" clause (aka an Alienation clause) that might pertain to the home that you lease-to-own might possibly cause the lender to foreclose against your landlord before you ever have a chance to buy the thing, leaving you out in the cold. I would be very cautious about any lease-to-own situations that I got myself into. There are so many things that can go wrong here. It's extremely risky, especially from the perspective of the lessee (you). Again, talk with an attorney. Spend a few hundred dollars now to avoid losing thousands down the road.
- Hi, they answer to your question is yes! And you should put absolutely NOTHING down on a Lease-Purchase Agreement! Now for the whole story, lol, you need to see my answer on a question about five questions up from yours titled "mortgage question". Chances are you will not meet the obligations required by these landlord ripoff artist home sellers, a Lease-Purchase is the worst and most risky way to try to purchase a home. Just as an example, you had a bankruptcy and it will take you at least three years to qualify for a conventional loan, probably longer, I'd suggest five, might not be good news, but it really is because now you know! You enter a lease purchase and the landlord simply doesn't get your check deposited to his bank in a timely manney, maybe even after thirty days later a couple times about six months before you are required to refinance. How are you going to prove to the new lender that you didn't make a late payment???? You can't! Well, you might have a case if you send all your payments by registered mail, return receipt requested, but even that is not proof the check was inside. Now you can't refinance your lease-purchase agreement, the landlord/seller keeps your down payment and all the payments you made and you are out of there, just in time for the seller to do the same thing to the next guy! So the question is not can you do such a deal, but why would you? There are a hudred ways for you, the buyer, to lose on these deals. Sloution, find an assumable loan that a seller already has, there is probably no "due on sale" clause, then wrap the mortgage with a second mortgage provided by the seller; or do a simple Lease, then do a second contract called an Option, giving you the right to purchase the property at a set price in the future. You might give an option price that will be credited at the time you purchase, but there are usually no montly payments for the option. Now you are a tennant and you have possession of the property, many other problems can be avoided, (read my other reply). Make the option period for at least five years. File the option at the court house at the Recorder's Office! In three years, even if you move out, you still have the option, if the seller doesn't require you to be in good standing under the lease agreement..... If you have more questions post them or contact me, the bankruptcy is not the end of the world, it's a second chance, educate yourself and then go for it! B PS. Read the other reply!
