If you're like a lot of other sellers you're in the process trying to figure out how to keep your property out of foreclosure. Maybe you're at the point where you realize that you can't lower the price anymore or the sales amount won't pay off the loan and besides it's probably already overpriced.
Possibly you just got the news that yet another prospective buyer couldn't get a loan and your real estate salesperson basically says they can't do anything more.
You don't have the money to continue making the payments so you have make a decision that won't destroy your credit, so walking away is not an option.
As bad as you hate the thought you decide maybe you need to get a renter, even though the rent won't cover the loan payments and they will probably tear the place up.
Take heart because there is another choice and not only could this one bail you out it might even make you money down the road.
It's called the Lease With Option To Purchase or the Lease Option and most of the time Rent To Own.
The way it works is this: You have a Tenant/Buyer (T/B) who agrees to lease the sellers property for an agreed upon amount for an agreed upon period of time and gives the seller something of value for the option or right to puchase the property for an agreed upon amount for an agreed upon amount of time.
There are a lot of good prospective buyers out there who don't have tens of thousands for a down payment and whose credit is not good enough today to go out and get a loan today, but they probably could in a year or two.
Here's how this will help you out of your predicament: Find a T/B (maybe one of the ones who already like your house) who has at least 3% of the selling price for an option fee, is willing to pay a little over market rent and a little over market price for the chance to be a home owner.
For an example if the house was worth $200,000 you would sell it to them for $220,000 and because you don't need a real estate person you will make an addition $10,000 to $12,000.
The T/B will be happy to pay extra rent when you tell them that you will credit them part of the rent back to use for their down payment, when they pay on time.
They will also be agreeable to do any repairs up to an agreed upon amount to be able to treat the house like theirs, which is good for you because they won't tear it up.
Doing a rent to own/lease option could solve your problems because you'll have up front money to pay on the loan payment if the lease payments don't cover it.
Because you're getting higher than normal rent it may cover the payments or get real close.
You won't have any repair bills, because most T/Bs keep the property up and usually improve it.
If the T/B decides to not purchase the property you're entitled to keep their option fee and extra rent and you can do it all over again.
All in all this is a win win position for both seller and T/B.
The author, Don Levy, is a retired mortgage broker who still does investing, writing and consulting concerning mostly lease options. If you'd like more information go to http://profitinforeclosures/leaseoptionrequest.html and pick up a FREE Guide to rent to own/lease option buying. He will also give you a Free consultation/evaluation on anything lease option for a limited time. Get the preliminary questionnaire at
http://profitinforeclosures.com/Contact.html or email him at dons10best@gmail.com
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Contributor's Note
Free lease option guide at http://profitinforeclosures/leaseoptionrequest.html and Free evaluation to see if your ready to get into a home at http://profitinforeclosures/Contact.html
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