Q: We went through foreclosureForeclosure is the legal action taken to extinguish a home owner's right and interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. in a property, so that the property can be sold in a foreclosure sale to satisfy a debt. last year. With the abundance of houses on the market, we were hoping to find a lease purchase deal while our credit recovers. We haven’t had any luck in finding one. Any advice would be much appreciated. Thanks.
A: You may not be able to qualify for a loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. for up to 5 years, so a lease/purchase (also known as a “lease with an option to buyA Lease with an Option to Buy is when the renter or lesseeA Lessee is you, or the person leasing a vehicle or residence. of a piece of property has the right to purchase the property for a specific period of time at a specific price. Usually, a lease with an option to buy allows a first-time buyer to accumulate a down payment by applying a portion of the monthly rent toward the down payment.”) might make some sense if you find a seller who is willing to do that kind of deal.
If you want to find a lease/purchase, you’ll need to find someone who is renting a property you’d want to buy and then make an offer. Often, you’ll find lease/purchases advertised in the “properties for rent” section of the local newspaper or online at a website like Craig’s List.
If you’re going to work with a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state.A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one., you might want to hire based on the agent’s ability to find a lease/purchase arrangement for you. The ideal candidate will be a seller who has already moved from the property and has paid off the mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home..
But since you will have to wait another 4 years to get a loan, it may be tough to find someone who wants to wait that long to get his or her money. Most sellers are willing to hang in there for a while but want to know that if they are trying to sell their property, the sale actually occurs within a couple of years after the documents are signed.
If you aren’t lucky finding an owner willing to lease you a property with an option to buy it, you might just want to rent for a while until your credit improves and you have the money to put down towards a down payment and can get financing in a traditional way.