I own my home now. I'm anticipating relocating. This will happen very quickly and I fear facing two mortgages. Not sure my credit will bare two of them. Thoughts?
2006-11-29 13:41:04 · 5 answers · asked by Darryl S 1 in Business & Finance ➔ Renting & Real Estate
Contrary to other opinions, it really depends on your situation. If you are selling your house, a lease option can be a great deal for you.
Typically, you will get a non-refundable option payment that locks in a price and give the tenant the opportunity to purchase within a specified time frame.
Statistically, most people who do this don't excercise the option, so you can just do it again after the lease expires in a year.
In the meantime, you are paying down your debt, increasing your net worth and probably making a couple of hundreds bucks a month on top of that.
On the other side, credit will indeed be an issue. Start looking into that as soon as possible. Don't pull credit, talk to your bank/mortgage company and let them know you are thinking of buying a new home that you will be living in (it makes a difference to them).
That should give you a better idea of it is doable or not.
2006-11-29 14:24:17 · answer #1 · answered by ga_rei_guy 3 · 1⤊ 0⤋
Alot of "ifs" here. IF you sell your home on a lease/option, make sure the contract is drawn up by a good real estate attorney. You don't want any loopholes.
IF you lease it out and are relocated to a place where you won't be able to oversee the property, then you will be hiring someone else to take the responsibility. That's an extra expense.
Also, check with your tax preparer on what you are allowed to take as rent and deductions if you are an absentee landlord. It varies from an active landlord.
Just some thoughts. It would make a rapid sale, lease/options are hard to find. Your mortgage payment would be covered.
Good Luck!
2006-11-29 15:40:17 · answer #2 · answered by Barbara 5 · 0⤊ 0⤋
You should put your house up for sale right away, with an incentive of "paying for buyer's closing costs", or "paying first month's mortgage" for the buyer.That could be appealing to many buyers, and will help you out of difficult situation.
Renting with an option to buy is not a bad idea if you know that seller is renting it because they can not sell it other way. However, if the situation is unclear, I would Rather rent an apartment which would allow me to sell my home, to know exactly how much money I am working with, and would give me time to browse as many homes until I find one that is perfect for all my needs. When people are in a hurry, they tend to buy without thinking things through, and their decisions are unwise.
2006-11-29 13:58:29 · answer #3 · answered by sheba 3 · 1⤊ 1⤋
No, it's not a good ideal. One, the lease will simply have a speculation that it would go back to owner. Why don't you sell the home you are in now and buy a home where you are relocating. Then you take equity profit from one house to another. Or if you choose to have two homes you may get second mortgage or investment loans where you pay interest first and pay in the back of your loan. I know a good website www.denjrealtormel.com
2006-11-29 14:06:58 · answer #4 · answered by Melissa 2 · 0⤊ 2⤋
it is not wise because if the landlord files bankrupcy you loose the home it doesnt matter if your on your last payment
2006-11-29 13:44:35 · answer #5 · answered by marwinstonboro 2 · 0⤊ 3⤋