Home Buying in Cordova>Question Details

Jagsown, Home Buyer in Cordova, TN

If a non qualifying lease purchase is no credit check, then why do they then say no recent evictions or chapter 13?

Asked by Jagsown, Cordova, TN Sat Jun 25, 2011

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Non-qualifying lease purchases sometimes are by nature setting you up to fail. They take a non-refundable down payment, set terms and conditions, and wait for you to not hold up your end of the bargain. In many cases, they want you to violate the terms of the lease, sometimes bordering on draconian, so they can ask you to leave and collect another down payment from the next guy. In this case...I can't imagine why they have "qualifiers" unless they are a little more on the up-and-up.

No matter the case....unless your credit is so wrecked you can't rent something...I would avoid non-qualifying lease purchases.

Good Luck
1 vote Thank Flag Link Fri Aug 12, 2011
People Have no choice now a days!
Flag Wed May 22, 2013
It is difficult to render an opinion without knowing all the facts, but I shall make a few assumptions, and try to assist you. First of all, I am not aware of any Sellers who would enter into a lease/purchase agreement without checking the credit of the potential purchaser. The purpose of these lease/purchase transactions is to provide an means for a Purchaser to acquire and ultimately purchase a home that they currently cannot. Putting yourself in the place of the Seller, asking about a wage earner bankruptcy and/or recent evictions is a means of determining whether or not the Lessee/Purchaser will be able to complete the transaction and/or if, based upon past and recent experience, he is a safe risk to take care of the property and perform all the terms of the agreement. A lease/purchase transaction is ultimately intended to result in the Lessee becoming the Purchaser of the property, subject to the terms of the agreement. A Seller entering into such an agreement wants to feel comfortable that it will ultimately close, as most Sellers do not want to be "Landlords", but agree to do so to facilitate the sale of their property.

I hope this answers your question. Good luck with your home search.
0 votes Thank Flag Link Mon Jun 27, 2011
As the others say, a seller can require those terms.

Incidentally, I've seldom run into lease-purchases that say "no credit check." Usually, it's "no bank qualifying," or similar. But virtually all the sellers (either the owners or investors doing lease-options) require credit checks. Now, the credit requirements may be far more lenient--especially if you're coming in with a large option fee--but in most cases the goal eventually is to sell you the house. And that means that you've got to be in a position to clean up your credit and qualify for a purchase during the period of the option.

Hope that helps.
0 votes Thank Flag Link Sat Jun 25, 2011
Don Tepper, Real Estate Pro in Burke, VA
If you have a recent Chapter 13, sellers know you won't be able to purchase the home in the next few years. The point of a lease purchase is to give a potential home buyer 1-2 years to repair their credit so they will eventually qualify to buy the home. If you have recently filed bankruptcy, you typically no longer fall into a 1-2 year catagory. Sellers want to know there is "light at the end of the tunnel" and typically aren't interested iin giving people 5-7 years to qualify to purchase. Regarding recent evictions, the majority of people who have evictions on their credit aren't good renters. As a seller, the last thing you want to do is open yourself up to people who have bad history paying their rent. Leasing your home is already risky so sellers typically try to minimize the risk by leasing to people who have a good rental history. Hope this makes sense!!
0 votes Thank Flag Link Sat Jun 25, 2011
the seller still has the right to set whatever credit guidelines they want.
0 votes Thank Flag Link Sat Jun 25, 2011
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