Home Buying in 30052>Question Details

Gina Warren, Home Buyer in Monroe, GA

Can you lease purchase a foreclosure property?

Asked by Gina Warren, Monroe, GA Wed Mar 21, 2012

I need to build my credit score for 6 months to year. I need to buy now because my landlord of 9 years has gone into foreclosure on our home. I would like to lease purchase while my score gets higher. Is a foreclosure property an option?

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BEST ANSWER
Nope. However, they will be renting them out soon, per Obama's speeches.

I've done a ton of Lease/Purchases since I also property manage. Let me know if I can help you.

Julie
1 vote Thank Flag Link Wed Mar 21, 2012
I have a lease on my grandmas home that carries me though 2016. She did a lease with me before she passed because i needed to have one for work and i also payed all her bills. she had a reverse mortgage and now they want to foreclose. I don't qualify for a mortgage can I negotiate for them to buy me out of my lease as oppose to have to them spend the money to foreclose?
Flag Wed Nov 5, 2014
Most of the sellers interested in entertaining one of these transactions will already owe money against the property so they will not (should not) want to record any contact that might trigger the due-on-sale clause in their mortgage. Unrecorded contracts are difficult to protect should something happen to the seller, divorce, illness, death just to mention a few. Other entries in my blog will shed some light on the subject.

They are not what you expect, hope my comments keep you from getting hurt, good luck,
1 vote Thank Flag Link Wed Mar 21, 2012
Hello Gina it's not standard at this time, although some foreclosure listings are erroneously marked as lease purchase or owner finance when entered in our database.
0 votes Thank Flag Link Wed Mar 21, 2012
I agree with Don, even if banks were doing lease options you would definitely not want a bank for a landlord. Statistical reports that I have read on Lease Purchase in our area report that less that 50% of Lease Purchases actually close.

Take the time to understand completely what you are getting into. Do not enter into any agreement with out checking out your landlord completely and having an attorney review and add protection for you in the contract.
0 votes Thank Flag Link Wed Mar 21, 2012
No.

Banks aren't in the business of renting houses out. And you wouldn't want a bank as your landlord in any case.

If you want to do a lease-option, that's fine. (I'm a big advocate of them. Others here on Trulia are less enthusiastic. Just know what you're getting into; read all sides of the discussion.)

However, find an individual owner willing to do a lease-option. There are plenty around. And make sure you have a lawyer review the agreement. There are various protections you'd want included.

Here's a link to a blog I wrote on how to find lease-options: http://bit.ly/findaleaseoption

Hope that helps.
0 votes Thank Flag Link Wed Mar 21, 2012
If you have an owner financed property with your name on the deed and the taxes in your name and is still unable to get a loan at the end of the contract with the seller, what legal action can the seller take against you?
Flag Mon Apr 8, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Lenders historically do not offer rent to own lease options on their homes. They want to sell them and get them off their books. Regular home owners may be open to rent to own. Have your agent prospect the active rental listings to find one that may work for you while you work on your credit score.

All the best,
Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Wed Mar 21, 2012
If it is going into the foreclosure process the house will be sold at auction at the courthouse at some point. I assume you are not in a cash position to buy it so it will go to the high bidder. Often these days that is the bank that has the mortgage that buys it. Banks won't lease it, they will sell it to someone. Your lease should survive but only until the date it expires. Once sold, at auction to someone, they could rent it to you (if it is not the bank that buys it) or if sold after the bank takes it back that buyer could rent it or lease it to you.
0 votes Thank Flag Link Wed Mar 21, 2012
With traditional banks most times they will no do a lease purchase because as Shanna said they want the property off their books. I do know of a cases where you might be able to lease purchase a bank owned foreclosure based on current inventory and if you have the ability to close within the next 6 months through the preferred lender. If you are interested please contact me.
0 votes Thank Flag Link Wed Mar 21, 2012
The legal teams that represent the banks that own the fireclsoures do not allow a lease purchase for these assets in most cases for liability purposes as well as they want them off their books.

Terri Bianchini
Chapman Hall Realtors
http://www.TerriSellsAtlanta.com
0 votes Thank Flag Link Wed Mar 21, 2012
Well said, Shanna. The simple answer is "No" and besides a Lease Purchase Option you might consider Owner Financing. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com
0 votes Thank Flag Link Wed Mar 21, 2012
Banks are selling their bank owned properties because they want them off their books. They do not want to be landlords. That said, they won't do lease to own. You will need to find a seller who has equity or a seller who can afford to still make payments on the property while most likely owning another home.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Wed Mar 21, 2012
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