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Can someone help with lease/option to buy info?
I have a question regarding lease/option to buy loans. My husband and I lost our home of 17 years 18 months ago. We sold it at a quick, and in no way to our advantage sale in order to avoid foreclosure. We made basically nothing on it. My husband was formerly self employed, but is now steadily and full time employed. We have been renting for the past 16 months and have been excellent tenants,always paying early. Our credit is awful, and we know it....However we want to start having something of our own again.....I see offers for lease/option to buy that really don't require large down payments. What is your attitude and policy to people in our situation? Thank you for your reply.
Public Comments
- When you enter into this type of an agreement with a seller, you would probably agree to buy the home a year from the move in date. This will give you time to improve your credit and get ready. I think it is a great option for you but just make sure you get the home you want. Talk to a Realtor and see if they can give you a list of properties to start considering.
- There is nothing wrong with lease and option to buy if you enter into a well reasoned fair contract that is not beyond your means to afford. Essentially, in such an arrangement, you are renting the home, but a portion of every rent payments counts toward the purchase of the house. At some point before the option expires, you have to exercise it by buying the home at the agreed upon price, with accumulations of past rent payments consisting of some or all of the down payment. Before you enter into such a contract, have it examined by a lawyer who can advise you on all aspects of the transaction. At the time you exercise the option, you have to be able to obtain appropriate financing. If you don't exercise the option, your past payments simply constitute rent.
- That is a tough one...I would start saving every penny you can and you will probably have to come up with a very large DP.
