With potential home-buyers sometimes finding it difficult to get a mortgage, more and more consumers are looking for an alternative to realizing the American dream of owning a home. One of those alternatives is the "Lease Purchase Option."
First; What is a Lease Purchase Option?
This basically means you are leasing or renting a property with an option to buy it at a future date. The future price of the property should be fixed at the time the lease-option is signed.
Usually there is an up-front payment of some amount to purchase the option. The amount can vary. Sometimes the monthly payment is larger than normal and the excess is used to purchase the option. In some cases, the option money can be applied toward the down payment for the later purchase of the home.
Lease-purchase plans can be structured in such a way that both parties benefit. They can also be structured so that all the benefits flow to one of the parties and none to the other. Buyers especially need to be careful because they usually know less about the market than sellers, and the seller usually provides the contract....unless you are working with a REALTOR!
The lease-purchase offers homeownership opportunities to consumers who can't qualify for a loan from any source, but who are prepared to bet on themselves. The bet is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate savings while living in the house.
Even though it can be more costly, the right not to exercise the option is of value to buyers. If there is something seriously wrong with the house, neighborhood, or neighbors, the buyer can cut her losses by not exercising the option.
Dangers to Buyers
A major threat to buyers is contractual provisions that can nullify their option, such as the failure to pay the rent on the first day of the month. Such provisions are most likely to appear in contracts used by developers or firms that own multiple homes.
As with all contracts, it is wise to consult a real estate attorney before signing.
Here are some “lease purchase option’ homes in Ocean County, NJ:
Details: MARACAIBO PL, TOMS RIVER, NJ - $1,000
Details: MANSFIELD DR, BRICK, NJ - $1,350
Details: GREENBRIAR BLVD, BRICK, NJ - $1,350
Details: KNOLLWOOD TER, BRICK, NJ - $2,200
Details: WALNUT DR, LANOKA HARBOR, NJ - $1,500
Details: PASSAIC AVE, POINT PLEASANT, NJ - $1,795
Details: VESSEL LN, MANAHAWKIN, NJ - $1,400
Details: BRUCE DR, MANAHAWKIN, NJ - $1,750
Details: PEGGY LN, MANAHAWKIN, NJ - $1,750
Details: JONATHAN DR, MANAHAWKIN, NJ - $2,200
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