Foreclosure in Williamstown>Question Details

Bob, Home Buyer in lei

In pre foreclosure

Asked by Bob, lei Sat Aug 23, 2008

If my house is in per foeclosure and I end up losing the house can I get into a lease purchase?

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You should contact your mortgage company to consider working out better payment. Try and stay in the house if you can. The banks will usually work with you. They will attempt to get as much out of you as possible so be firm with the amount you can afford and most of all sound sincere. Make yourself out to be trying to resolve rather than hide and run. Also consider putting your house up for sale. If you can walk away with any equity, it is better than nothing at all. A professional can help you with that if you cannot figure it out.

About lease purchases, there are alot of traps out there(not all are traps) to line lessor's pockets only. They provide a lease with option asking to put 1000 2000 3000 and usually lots more up front. Then your monthly payments are set at market. Allowing the upfront money and a portion of your monthly payment to go towards the purchase price if you excersize your option in a year, (they'll tell you it will give you time to get your credit back in shape and the money used will look like a down payment... to entice the deal) they sound sincere too like they are doing you a favor. Meanwhile a year goes by you paid your rent, the option expires and they renegotiate more money and will give additional incentives for more money upfront for the new agreement. You won't want to see all the money you just paid go away so you make another deal... It goes on and on... On some cases it can work, but mostly it is a way for these people to make big bucks the chances of most people with bad credit to be better in only a year almost next to impossible. Lots of these deals are done with cash too... and cash is king. I seen them done.

Your best options
Work your deal with the bank,
try and sell your home to get equity out.
At last resort a short sale may work just to protect your credit. And in case of foreclosure a short sale will help your credit over a foreclosure...

I don't know your entire situation, but watch out for scams...

If you have interest in calling and talking with me more please call me. Would be happy to discuss more with you.

Good luck!
0 votes Thank Flag Link Fri Sep 26, 2008
Probably not. Do you currently have the home listed for sale?? Your first step is to get the home listed for sale and price it right to get a buyer in there. If they foreclose you will be unable to rent a place for quite some time because of the damage it will do to oyur credit. Let me know if you have any questions.
0 votes Thank Flag Link Sun Sep 21, 2008
Bob,
Be careful of companies offering to buy your home so you can avoid foreclosure. If you are approached by any of these companies make sure you have a professional look over the documentation.

Most mortgage companies will work with you to keep your home if that's what you want to do. Talk to your lender first.

Good luck!
0 votes Thank Flag Link Fri Aug 29, 2008
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first. Try http://www.speedyrealestate.info.
Good luck!
0 votes Thank Flag Link Fri Aug 29, 2008
Bob, have you tried to do a rate modification with your bank? If not, I can help. Believe me, they don't want your house back, as many banks have a huge inventory.
0 votes Thank Flag Link Thu Aug 28, 2008
Bob:

Have you spoken with you mortgage company to see if they will work with you. If you have an FHA mortgage there are defnitely options that may be able to assist you in re negitating you terms. You could also consider a short sale which would get you out of the house without the foreclosure on record.
A foreclosure is one of the last items you want to appear on your credit report.
Give me a call and we can discuss your options.
John
0 votes Thank Flag Link Thu Aug 28, 2008
If you are in pre foreclosure you still have time to short sale your home. As stated before, a short sale is far less damaging to credit than a foreclosure. And with all the inventory on the market in our area, you can probably find a lease/purchase.

Please email mail me for information I've gathered doing short sales here in New Jersey.
0 votes Thank Flag Link Sun Aug 24, 2008
you also have to keep this in mind on the HUD-1 when the bank looks at it and what they will net on the seller(person facing foreclosure) they can not benifit from the sale of the property or the short of the property it has to be $0
0 votes Thank Flag Link Sat Aug 23, 2008
What state are you in ? You may have time to get your home on the market and try to get an approval for a short sale. It can take some time to do this but it is worth try. Contact a local Realtor who has done this type of sale before. As for lease purchase if it is with the lender you are being foreclosed on it would be unusual. But you never now. Good Luck
0 votes Thank Flag Link Sat Aug 23, 2008
It does depend on the seller or the agent representing them, if you have a foreclosure your chances of purchasing in the next 3 years are very low. You woul dhave a better chance of trying a short sale or negotiate with your bank, call them and ask for home retention, ask them about a loan modification or forebearance, if none of these 3 things work , then you woul dbe better of with a deed in lieu or foreclosure which your credit can recover at a slightly better pace. Good luck BOB on working things out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Aug 23, 2008
Bob,

That would really depend on the seller.

Is your home currently listed? Recovery is quicker from a short sell than a foreclosure.

I've done a couple leases over the last month for short sellers, they are great people, just in a bad spot.

Broker Dave
Orlando, Florida
Web Reference: http://two4oneoforlando.com
0 votes Thank Flag Link Sat Aug 23, 2008
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