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Lease Options & Owner Financing for sellers

Why are you selling your home? If you have equity in your home and you don't need immediate access to the money, you may want to consider selling on a Lease-Option or Owner financing.

With a Lease-Option, you're agreeing to sell the property to a buyer at a set price over a set time-frame. For instance:

John & Mary Buyer had great credit all their life until a few years ago when John was laid off. They tried to keep their heads above water but eventually they got behind on their mortgage payments and lost the home to foreclosure. They've been renting a small apartment since then but now Mary is pregnant and they want to step back into home ownership for their growing family. They both have great stable jobs now and have even saved up enough money for a down payment. They contact me because they're interested in purchasing your home. However, the strict guidelines of the bank stipulates that John & Mary will not qualify for a mortgage for another 18 months due to the foreclosure. Is the deal dead? NO! Since you don't have a pressing need to pull out your home's equity immediately, you agree to sell your home to John & Mary for $250,000 if they close within the next 2 years (2 years gives them some wiggle room). John & Mary can now move into the house paying you an agreed rental price (enough to cover your mortgage & put a little cash in your pocket). They'd also assume all responsibility to maintain the maintenance of the house. 20 months later, John & Mary qualify for the mortgage and purchase the house for the agreed upon $250,000 and everybody lives happily ever after! Contact me here if you have any questions about Lease Options.

Owner Financing is a little different...

Jane Buyer is in the same situation mentioned above. She was laid off a few years ago, lost her home to foreclosure, now has a stable job and wants to give home ownership another shot. Other than the foreclosure, she's had excellent credit all of her life. Your home is listed on the market at $250,000. She's interested in purchasing it so she contacts me to get the ball rolling. Unfortunately the strict guidelines of the bank stipulates that she will not qualify for a mortgage for another 18 months due to the foreclosure. Is the deal dead? NO! Since you don't have a pressing need to pull out your home's equity immediately, you and Jane agree that she'll pay off your small remaining mortgage balance with the money that she has saved. That's her "down payment". She'll then sign a promissory note stating that she'll pay off the remaining amount from the $250,000 (minus her down payment) within 2 years. 20 months later, Jane qualifies for the mortgage and purchases the house as agreed! So let's say Jane's down payment was $50,000 in which paid off your mortgage. You now became her bank by stepping in and loaning her the remaining $200,000. You can charge Jane any reasonable interest rate that you want for the $200k loan. So everybody wins! Jane got the home that she wanted, and you sold your house at the price you wanted and even made some extra cash in interest payments. I understand that this concept isn't easy to grasp. Please contact me here if you'd like a deeper explanation of the benefits of owner financing.

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