Rentals in Lapeer>Question Details

Kelly Jurosek, Home Seller in Grand Blanc, MI

I can get a home loan in October this year. Can I rent a short sale home with contract to purchase that home in October of this year? Is there a?

Asked by Kelly Jurosek, Grand Blanc, MI Mon May 17, 2010

legal way to do this?

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What your proposing is a lease option and sellers require up front nonrefundable money for that option 99% of the time. If for some reson you coldn't get a morgage in October you would lose that money. Even if the home owner offering the short sale agreed the bank also has to agree.There are other ways.

Judy Walrath
Lapeer, Mi.
0 votes Thank Flag Link Thu Jun 3, 2010
Who would want to risk it anytime the lender can change their mind.

Search for a home lease MAJORITY of time alllll properties owners would like to sale their homes.

Good luck

Web Reference:
0 votes Thank Flag Link Mon May 17, 2010
There are certainly legal ways to do it, but it'd be very, very, very risky for you.

The reason: If the property's being offered as a short sale, that means it's likely that it's a preforeclosure--that the property is heading down the road to foreclosure.

Your scenario seems to be that you'd put in a contract to purchase the home in October, and rent it in the meantime. I doubt that a lender would approve a short sale with a proposed closing date in October. It might be worth a try, but I seriously doubt it.

Next, remember that foreclosures and short sales are handled by two different departments in a bank. They're parallel, but different. And it's always uncertain which will happen first. I've seen plenty of cases where someone's put in a contract for a short sale and the bank's approved it. Still, it gets sold as a foreclosure and the would-be short sale buyer loses out. The same thing could happen to you: Even if you got your short sale offer accepted, the bank could foreclose before October. And if that happened, your contract to buy would be worthless.

Next, of course, are you SURE you'll qualify for a home loan in October? How are you so sure? What if, for example, you lose your job? What if interest rates jump up a couple of points? Even if the bank agreed to a short sale to occur in October, and even if it didn't foreclose in the meantime, what would you do if October rolled around and somehow you didn't qualify?

I'm not a lawyer, but what you're proposing is legal. It's just not a good way to approach it. Either do a conventional lease-option (or in your area land contracts are much more common)--and make the term for at least 2 years--or else wait until your credit is good enough for you to buy conventionally.

Hope that helps.
0 votes Thank Flag Link Mon May 17, 2010
Don Tepper, Real Estate Pro in Burke, VA
Kelly - contract with a buyers agent. That agent can answer all your questions and work for you and it doesn't cost you a dime! As far as your question posed here, there are too many unknown variables regarding YOUR financial situation ( that are unknown to us) and way too many issues and hurdles to overcome to get you into a lease with option on a short sale. The banks hold all the cards in most short sales and they live by their rules only... they don't comply with the normal purchase agreements and time frames... So I guess you will probably need a BUYERS AGENT to get things rolling for you when you say you are "eligible" for a mortgage.
0 votes Thank Flag Link Mon May 17, 2010
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