RentToOwn-HouseFinder.com
Lease-Option Home Value Dropped..Help?
We have a Lease Option on the home we are in now and we love the home/neighborhood but the price we agreed on is $245000 (last year) but now we find out the house across the street from ours appraised at $235000 and has a Pool, Screen Patio ALL Hardwood, Major Upgrades and better shape. We still are cleaning up our credit due to some unexpected things this year, so we can't qualify yet also we know the home will not appraise for the original price. Also I know of 2 homes on our street in foreclosure or about to be & atleast 3 more mores on the market or about to be. I want to be fair but the market is so down and I know they couldn't get someone else to pay what we do for this house. I don't mind keeping the price the same and see if the market improves in a year, esp. since our credit will improve by then. How do you think we should approach the owners about extending the Lease Option for 1 more year at the same terms? Should we ask about Owner Financing? Or What? They do have a mortgage and from what I can tell it is not assumable. How would you suggest I approach them about extending the contract for another year?
Public Comments
- If the option is about to expire, you'd be more likely to extend it under the same terms. If the owner can carry the entire loan at a low interest rate for a long term, than you shouldn't worry to much about the extra 10K (if he doesn't lower the price). Good Real Estate in good neighborhoods will always appreciate over the long term. It is possible that there is already a loan on the property and this is not an option. If that is the case you'll need a new loan or see if the existing loan is attractive, assumable. In this case, the shortfall to the owner would have to be made up by cash from you, or his carryback of a 2nd loan.
