Home Buying in Atlanta>Question Details

Mikelgaither, Home Buyer in Lithonia, GA

Will they do a lease purchase on this house.?

Asked by Mikelgaither, Lithonia, GA Sat Nov 17, 2012

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This question was asked from this property: http://www.trulia.com/property/3068951785-6055-Butner-Rd-Atl…

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9
Yes. You can reach me at 404-375-7341.
0 votes Thank Flag Link Tue Nov 20, 2012
Just to add my 2 cents in agreement with other comments - do not look for a lease/purchase arrangement.

I bet you think it means all the rent you pay will be credited towards the purchase...it doesn't.

If you don't qualify now for a mortgage, get yourself in good financial shape first - then buy a home..........otherwise you could lose the non-refundable upfront money that will be required.

There are a number of other pitfalls....beware before proceeding!

Best wishes......
0 votes Thank Flag Link Sat Nov 17, 2012
Lease purchase is a sucker play for a buyer - rent until you fix whatever issues there are and then buy smart. As noted, this is an REO home.

Hank
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Sat Nov 17, 2012
Hi

The home is a bank owned; foreclosure. They do not do a lease purchase.
0 votes Thank Flag Link Sat Nov 17, 2012
Mike Do not do a lease purchase here's why:
http://www.trulia.com/voices/Home_Buying/how_do_you_find_the…
0 votes Thank Flag Link Sat Nov 17, 2012
Consider working with an agent of your own who can inquire on your behalf. Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
0 votes Thank Flag Link Sat Nov 17, 2012
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.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

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 Sat Nov 17, 2012
Good Morning Mike!! I get this question a lot. However, I am not a fan of Lease Options. I always advise anyone who wishes to Rent to Own, to hire an OUTSTANDING Attorney (The Best of the Best). Usually Rent to Own options become very messy and are favored more towards the Seller, in my opinion.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.

Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
(631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Sat Nov 17, 2012
Lease/Option
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.

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!
0 votes Thank Flag Link Sat Nov 17, 2012
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