Is Lease Purchase for YOU?
It's that time of year - the calendar is counting down to the holidays and Sellers may start to get nervous. Sellers worry about everything,
- "What if my home doesn't sell before Halloween?"
- "OMG do I need to winterize my home - it's vacant!"
- "How much will it cost to heat my empty house?"
- I have to move in late December for my job transfer, I have to get this home sold!"
- And on, and on, and on . . .
On the other hand, we have buyer who may be working on raising their credit scores so they can qualify for a good mortgage rate on the home they have been dreaming of. They may be recovering from a foreclosure a few years back, or time spent living on savings in between jobs or even just consolidating or paying down debt - most of us can relate :o)
OK, so is Lease Purchase the Solution?
It just may be the perfect solution for both sides of the sale - the seller wants this home gone - yesterday! The buyer wants to be settled into their new home hopefully in time to celebrate the holidays in their new digs!
Protect Yerself :o)
If you are the seller, how do you protect your interests in a lease purchase?
- Hopefully your agent is on top of the situation and has the perfect clauses to insert into the contract!
- Hopefully your agent will make sure the lender gives them a tri-merged credit report that tells you about when the buyer will be able to close.
- Hopefully your agent will know when to say when and refer you for legal counsel to be sure your interests are protected.
If you are the buyer, how do you protect your interests in a lease purchase?
- Be sure the contract specifies how your payment siwll be applied - will some of it, all of it, none of it be applied to your down payments?
- Is the closing date realistic for your personal situation?
- Do you have enough money set aside to cover closing costs and down payment expenses?
- Have you discussed this contract with your lawyer?
Just a few things to consider - and a final word - done right a lease purchase may solve everyone's problems. Done wrong, a lease purchase may be the start of a giant headache - be sure to get good leagal advice - and when you are satisfied, think about moviing forward!