Home Buying in 30058>Question Details

Shirley Edwa…, Renter in Georgia

I'm looking for a lease purchase home in lithonia.

Asked by Shirley Edwards, Georgia Wed Apr 10, 2013

this home must be in a nice neighboor, 5 or 6 bedroom 4 bathroom and a basement.

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Shirley, please be careful to listen to only one side of anyone’s story. Nothing is bad or good in and of itself. It depends on how it is structured & the parties. Some of these people should give you options & information & let you decide what is best for you after presenting a balanced approach.

Many of them are only presenting negatives so that you will feel that you need to go through them.
They are only self-serving supposedly professionals and will always tell you that you only need to go through them. These types of professionals were also complicit to the housing crisis within the last few years. Moreover, they do not like private homeowners taking business away from them. They would rather you and even these private homeowners who are supposedly suspect go through them for every transaction, as though they and their profession are more legitimate.

Caveat Emptor applies to anyone. My sister is an underwriter and she tells me that these professionals rip off the average consumer every day. Judge on an individual basis & consider all options
I am not like this and have property and know someone who also has a property for a renter or just a lease-purchase. I have been leery of leasing to just just renters due to some of them not maintaining a nice property, & was open to outright purchasers or those with the option to buy because they tend to keep it up much better. Sometimes you don’t know if you really want to buy something unless you have lived in that area for while. I had bought a place one time and didn’t like the dynamics of the area or people and didn’t know that until living there even though I researched the property. genuinelygood@hotmail.com
0 votes Thank Flag Link Thu Oct 24, 2013
Hi Shirley,
I do not suggest doing lease purchases. There are simply way too many things that can go wrong with one from either side.

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
Prospect Mortgage
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 mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Apr 10, 2013
That is tough because owners typically will enter a lease purchase when they can't find a buyer but in this market buyers out rank sellers by 70%. In other words, what is the incentive for a seller to enter into a lease purchase? Potential "buyers" who want a lease purchase are typically wanting this arrangement because they don't have the funds or the credit to purchase now. Sellers know this and given the choice of "leasing" their property to someone with shaky credit and wait two years for the payoff or sell their property for cash now ~ they are more likely to take the cash and run.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes Thank Flag Link Wed Apr 10, 2013
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
0 votes Thank Flag Link Wed Apr 10, 2013
Flag Wed Apr 10, 2013
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