lease purchase - Posted by Starla

Posted by GMann on June 11, 2006 at 07:31:21:

You could offer a seller 2nd mortgage of 5-10% and probably get a lot more interest in your house. You would be financing 5-10% of some or all of the borrowers down payment. You would get 90-95% of the sales price up front and would collect the payments from the 2nd mortgage. The typical term is a 30 yr with a 3-5 yr. balloon depending on the minimum term the lender on the first mortgage will allow.

If you called a couple of mortgage brokers in the area and told them that you would do a 10% 2nd mortgage, you have a high chance of selling it quickly. That assumes that the property is in good repair.

You have a risk of non-payment on the 2nd mortgage, but you will get the majority of the sales price at closing.

lease purchase - Posted by Starla

Posted by Starla on June 09, 2006 at 15:54:14:

We are in a flat housing market and may be accepting a lease purchase for our home. The realtor wants to know our payment needs. I figure that we have about $950.00 expenses in our taxes, insurance and equity line payments. the home is at an asking price of 174,900. It is a 5 bedroom 2 1/2 bath in a great 30 yeqr old neighborhood. What type of lease purchase agreement should we be looking for and it this a good way to go? We have moved to another home and want to sell this one.The home has been on the market about 6 monthes. Any suggestions!