In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.
If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.
The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.
It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.
Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Yes, ATL traffic CAN be the pits. It's great if you can live close to work, but the chances might be (depending on what you do for a living) that your job situation may change. So you might start living close to your job, and later have a longer commute because you had to change jobs.
You want to take your lifestyle into account. You've mentioned excellent schools, so that in and of itself may dictate where you live, more so than your job location. You might want to live closer to the school for activities? One thing I can say is how FAR from a major freeway you live can be a huge consideration. While traffic may back up on a 4 lane freeway, just imagine a 1 lane in each direction surface street that runs in front of your subdivision and is your only way out! That can be a major part of your commute time right there.
ATL does not do East/West commuting well at all. We failed to get major freeways built that cross the northern part of Atlanta...so while you might want to live in the South Forsyth High School district, if you work in Cobb or Gwinnett Counties, you don't have any freeways to get you to and from. On the other hand, you've got I-75, I-85 and GA400 that are more or less North South, getting you from the Northern burbs of Alpharetta or Cumming (South Forsyth High) to business centers like the Perimeter, Buckhead, Midtown and Downtown.
On the rent to own, or lease purchase side of your question, it can be a challenge to find this type of rental. Many Sellers either NEED the equity from their sale to buy another home, or need to sell it period. If they are in a postion to rent, they certainly might consider that. But it's an exhausting process to call listings and find out if they will consider renting. A better option might be to simply rent in the school district where you want to be. This will accomplish three things: 1) Are you happy with the school? 2) Do you like the neighborhood and want to make it more permanent -buy- and 3) how's the work commute? After that year, if all these questions are good, then buy. But if one of them is wrong, you have an opportunity to change.
Hope this helps!
Keller Williams Realty Peachtree Road
404-419-3625 or 480-274-0021
If you need any assistance, let me know. Also you can find a ton of information about the local communities on my website at http://fredyancy.crye-leike.com under the "local communities" tab
Fred Yancy, Broker