buying a home from a landlord is considered a Non Arms Length transaction in the eyes of the new lender you will be obtaining your financing from.
They will scrutinize your package more than they are even doing now.
You will need to provide one year's worth of cancelled checks to the landlord. They will want to be certain that you have been paying fair market rent, etc.
It may a very difficult transaction.
As always, before writing any offers, I would strongly urge you to consult with a mortgage professional! cg
If you are leasing a home that goes into foreclosure (depending on the stage of foreclosure) there is not much you can do to purchase it. If the home is already bank owned you will most likely have to write an offer just like any other buyer and see if the bank will accept it. I have represented a tenant who tried to purchase a home that was foreclosed on before it went on the market but the bank was very hesitant to work with them. We did get them to listen, but this buyer was out to find a "deal" and banks definitely don't want to waste time as they know what the home is worth so be sure you are ready to put together a strong offer if you want any shot. If this doesn't work, typically banks will vacate the premises, get it ready to market, and put it the home up for sale. From that point, any interested buyer will have to write an offer.
If the home is in the "foreclosure" process, you can talk to the owner about a short sale, and have him/her contact a real estate professional, legal council, CPA, etc to discuss pros and cons for themselves and their situation and go from there. Honestly this is your best bet.
I hope this answered your questions, I know it's a dynamic subject, but if you have any specific quesitons I am more than happy to help!
If that property goes into foreclosure, there is nothing you can do to get it. You may have a good down payment, but there are investors who are bidding with cash only. Now, if you can ask the current owner to do a short sale,this can be a good thing for him/her. Also, if the property is closer to a Trust Deed sale, then you must have to bid for it at the court steps.
Please consult a professional real estate agent, who specializes in this type of transactions. Call me if you don't have one.
You have a better chance buying this property in short sale than it being foreclosed upon. Right now, your agent can still negotiate with the bank and can delay the foreclosure proceedings if you are in escrow. But if you wait for a better price once the bank owns it, there is no guarantee anymore since the bank will always take the HIGHEST offer. If the owner is not doing anything, pleas hire a good agent who can initiate a short sale for both you and the owner. I will recommend myself to help you do this. Remember, TIME IS OF THE ESSENCE.
It wont matter to the bank that you are living in the house, as when it is foreclosed, you will not be a consideration to their plans.
However, the other parts, as far decent amount down and less contingencies and 30 day escrow is appealing when making an offer to purchase. This is taken into consideration of higher offers who may not have as much down, or may need a longer escrow period.
As far as a short sale, we can approach the owner on your behalf, we do that often four our investor clients, and try to get them out of their bind once a NOD (Notice of Default) is filed, You can get more info on foreclosures on our website at http://mylarealestategroup.com/foreclosures___investments-c5 . It gives you an updated list every monday of new foreclosures sorted by zipcode.
If you send us an email about a specific property or information in general, we would be happpy to see what we can do for you.
Lou & Alex
LA Real Estate Group
If the owner will do a short sale you AND the bank are ahead of the game.
All my best,