can someone be eligible for a lease to own contract if they have filed bankruptcy in the past?

Asked by Jennifer, Toledo, OH Sat Jan 28, 2012

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Jim Beatty, , Toledo, OH
Tue Jan 31, 2012
Some good answers here.

Absolutely yes, you can get a house on land contract, lease option or lease purchase the day after your bankruptcy is discharged if you want, as long as the seller is willing!

Regarding bank financing, the old rule was that you couldn't get a mortgage loan unless the BK is at least 2 years old and credit re-established.

Most lenders are now saying 3 years after the BK.

A word of caution on buying a house on ANY type of contract for deed (or for sale by owner, for that matter), always have a title search and title guarantee done by a title company and have your attorney review the deal.

Each of those will probably cost somewhere in the range of $200-$500 and may very, so shop around.

After the deal is closed have the title company record the deed! This is very important, and you'll want to have the purchase agreement saying something to that affect that the seller agrees that this is to be done!

And, have your lawyer review the deal BEFORE you sign anything!

(I said to have your lawyer review the deal twice because it's important!

Somone said never buy a rent to own home because they "always fail", that simply isn't true!

I have a good contact with a reputable company who has a long establised successful track record selling rent to own homes here in Toledo. I've shown several of their homes and I think they do an excellent job of rehabbing the house, they are a very professional operation, and their term seem very fair!

There ARE, though, some sleazy operators in town who simply want to take your money, or might even sell you a house that's being foreclosed, and even though you have a contract to buy it, you'll still lose the house!

(one more time, use your lawyer!)

If you would like, I'd be happy to help you get into a good house with established companies.
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Steve Vennem…, Agent, Pine Springs, MN
Sun Jan 29, 2012
Credit usually isn't an issue with lease to own-rent to own or contract for deed search site the site below for sellers offering financing for free also realtors who post their information.
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419Rentals ., Agent, Toledo, OH
Sun Jan 29, 2012
Hi Jennifer,

We might be able to work with you - it will depend on income and background check. Fee free to call me at 419-810-3808.


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Mark Steinba…, , Perrysburg, OH
Sat Jan 28, 2012
yes --but never do one--all most all rent to own fail--you are giving money to a person and not to a Bank. You also, have to be loanable in 3 yrs because the owner is not going to do a rent to own / land contract for 15 or 30 yrs as a reg. bank mortgage. I recommend having a family menber buy a home for you or just rent a home / apt.
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Saul Garcia, Agent, Chicago, IL
Sat Jan 28, 2012
It depends if the owner is financing or a bank or mortgage company. If the owner is financing it they can do it as long as you are up front and can get it in writing with the initial contract. But, if you are going to go to bank or a mortgage company for financing they can and will do it , if the BK is old and you have a good new credit history.

You also, should check FHA loan criteria because, they will finance people who have bankruptcy history.

You can also check, to see if they have an office near you, they will finance people with bankruptcies but, you have to go, through their financial classes.

Hope it helps.

Saul Garcia:
Web Reference:
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Marge Bennett, Agent, Fort Myers, FL
Sat Jan 28, 2012
you might also check with a lender to make sure you will be able to quality for a loan at the end of the lease period of the contract. If you won't be able to get a loan then, you might well lose all you have paid down to the seller.
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Cindy Keil, Agent, Papillion, NE
Sat Jan 28, 2012
Hi Jennifer,
This is totally up to the seller that is doing the lease to own contract. I recommend being totally honest with the seller, honesty goes a long way. If you need any assistance in your search, please feel free to contact me.
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