The Experts In Real Estate And Mortgages

Lease options are a way to control a property without owning it.They are going to be used more and more now that mortgage lenders programs require much better credit than they did for the last 10 years and the fact that there is a huge slowdown in home sales.

Sellers Benefits

Lease purchase agreements are commonly offered by sellers of hard-to-sell properties or in a buyers market.

* Sellers typically will get market value at today’s prices and relief from paying a mortgage on a vacant property.

Seller has someone that usually takes better care of the property than a typical renter because they are planning on buying it.

I have had lease purchasers actually improve the property, with my permission.

* If the buyer defaults, sellers do not refund any portion of the lease payments nor the option money and may retain the right to sue for specific performance.

Buyers Benefits

* Sometimes the lease payments may be higher than the market rent, the buyer is building a down payment and hopefully equity.

* Buyers generally make a small down payment, with little or no qualifying, making a lease purchase an attractive way to ease into the benefits of home ownership.

Credit, typically is not an issue and it also give a buyer more time to correct any credit issue prior to exercising the lease option in 1–3 years.

* Buyers also receive a forced savings plan since some lending programs will allow part of the lease payment over and above the median rental price for the area)to be used towards the purchase price .

With the tightening of the lenders purse strings, the number of people losing their home to foreclosure this may become the best option for a lot of people.

Posted under Foreclosure & Mortgages & Real Estate |