This is the route that many financially troubled people are choosing because it minimizes the cash needed upfront, puts them in a home, and gives them time to get back onto their financial feet.

Smart sellers that are willing to entertain this scenario are requesting references, doing back ground checks, and asking for large deposit amounts to protect their interests.

The effectiveness of this choise largely depends on the needs of both the buyer and seller an most certainly should include professional expertise.

Good luck

there is a person in my area that does lease option properties and is very proud that he has only had to sell 1 since he has been doing it. Be careful and make sure that you can fulfill the terms of the contract before you enter it. Do not enter into a contract with the hope that you may be able to come up with something. You need to have a plan and please talk to a mortgage professional to get an accurate view of where your credit is and what you need to do to be able to qualify for a home loan.
Once you have a plan in place to improve your credit you need to stick with it. One months worth of late payments can set you back to where you started from.

Good Luck.

Hey Teedy,

Make sure you educate yourself prior to going into a Lease-to-Own situation. Despite what some agents say.....(Lynn): "Never do one unless you have a Realtor representing you they are tricky".....There ARE some NON-LICENSED individuals/investors (though we are in the minority and generally looked down upon by the "Realtor" community) who work specifically on Lease Purchase deals (((clearing throat))). Any time someone says "NEVER" or "Always"....please take that with a grain of salt.

If you go this route, PLEASE use someone that is VERY familiar with the process (Agent or not) or a KNOWLEDGABLE Attorney who can do it for you. Poorly structured paperwork/lack of understanding are generally the causes of these "nightmares" that most pepole speak of. Maybe a better question would be...What are the positives and negatives of doing a Lease-to-Own?

Here is a link to one of my previous posts which addresses that specific question:

http://www.trulia.com/voices/Home_Buying/Is_lease_to_buy_a_g…


Best Wishes,

Darin

Never do one unless you have a Realtor representing you they are tricky. Why not lease a home clear your credit then purchase therefore you are not involved with anyone except yourself. Most of time this purchases end up in a nightmare.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

From a Buyer stand point not a bad way to go if credit issues are keeping the Buyer from purchasing.
Also if the Buyer can get in with little or no upfront money its a great way to test drive a home until credit issues have been satisfied!

From a Sellers stand point in my market in Ga its not really the best way to go mainly because the property is under contract during the LP for a certain sale price and in an LP that may be 6-12 month term the value of the property can drop considerably, making the whole deal change in such a bad way that the Seller may not be able to sell due to around 30% value decline.
I have a Seller in this exact dilemma right now and the Buyer may have to find another home because he wants to be a homeowner, and the Seller may not be able to Net Payoff without doing a short sale.

In my area the majority of the Lease Purchases never go to closing!!