I do not suggest doing lease purchases/rent to own. 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.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at www.rodneymason.com.... more
Unincorporated Jonesboro is quiet, tree lined and peaceful. We are minutes from Rex, Stockbridge, Morrow, and Henry county. I675 and I75 are accessible to this neighborhood. Welcome to all prospective home owners.... more
I will set you up on a "automatic update notification" = This will scan your area of interest (Lake Spivey) daily and send you an email and/or text message to review the property that becomes available daily. If you like it, we can immediately schedule an appointment to see it. Inventory has shrunk significantly, so speed is critical! Please contact me ASAP.
Max Wright (Realtor) with Keller Williams Realty Atlanta Partners (770) 912-5099
PS: I'm also a mortgage banker (20 years) - If you need advice on your application for a new house and how to get the best interest rate. Website: YouAreReadyTomove.com... more
There is no set time that any mortgage lender takes to approve a short sale. A variety of factors ultimately make up that length. A lot will also depend on how far along the seller is in the process when you submit your offer. If they have just started the process, you can expect it to take longer. You should expect at least 4-6 months as a minimum.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
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) | HomePathÂ® | HomePathÂ® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing... more
SJ, I would love to speak with you about your lease-purchase option. Many people are now looking to rent with the option to purchase. The advantage for you would be you can get someone in the home quickly and still have the opportunity to sell. The landlord/seller will allow the buyer/tenant to lease the property for a time agreed and then when the lease term is up the buyer will agree to purchase the property. The seller usually wants the buyer to already be talking to a lender to make sure they will be able to buy the home at the later date. If you are working with an Agent that person should be able to help with any of the negotiations. I would love to speak with you more. I can be reached at 404-805-4223.
Have a Bless Day
CAM Real Estate... more