drcpd2007, Home Buyer in Sicklerville, NJ

what if you did a least to own and cannot get a mortage?

Asked by drcpd2007, Sicklerville, NJ Thu Jun 14, 2012

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I agree with Larry. Most people don't understand that going in. If you are considering a lease purchase, there are a few things you have to consider. Mainly, will the property be worth what the seller will be asking at the end of the term. There are a number of owners that are renting these homes because they can not sell without doing a short sale. They opt to rent these homes until the market comes up and their mortgage balance comes down. This is not always the case, but I have run across this quite a bit while searching for a home for a client. The second thing is to consult and attorney once you have a contract. Make sure you understand fully what the terms are. Also, talk to a reputable mortgage rep that can tell you exactly what you need to do to qualify. I have a great rep in mind. You can reach me at 856.896.8078.

Cara Castrataro
Realtor Associate
0 votes Thank Flag Link Tue Apr 15, 2014
mostly you lose your money. But your contract will have that info within it.
Because a lease to own is really an option, your expiration of the contract usually provides no money back.

Many mis understood lease to own renters.

Search foreclosures and short sale here: http://www.BuyNJShortSales.com
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Larry Sarlo
RE/MAX Preferred
609-868-1171 call / text / email 7 days
lsarlo@comcast.net
http://www.larrysarlo.com
0 votes Thank Flag Link Thu Jun 14, 2012
It all depends on how the contract reads. There should have been a provision within the contract to deal with that contingency. I always recommend that my clients consult an attorney before they enter into a lease-to-own contract. You want to make sure that there is a provision in there regarding any money paid and the disposition of it when a situation arises that is under no one's control.

But when it gets down to it, it would be material to the contract to know the reason why you couldn't get a mortgage.
0 votes Thank Flag Link Thu Jun 14, 2012
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