question on lease purchaced agreement - Posted by aia

Posted by BrokerScott (Mich) on June 30, 2003 at 19:20:31:

You take what you can get. If credit terms are unacceptable or you simply can’t qualify, the option expires. Meanwhile, don’t take on new debts, pay down existing balances, and PAY YOUR BILLS ON TIME! Best, Scott

question on lease purchaced agreement - Posted by aia

Posted by aia on June 30, 2003 at 10:49:06:

at the end of a lease,if i deside to purchase the property,how does this work if i still have bad credit, to get a loan for the balance ?

Re: question on lease purchaced agreement - Posted by Mike Barrett

Posted by Mike Barrett on July 06, 2003 at 20:23:57:

If you have a good relationship with the owner, you have a couple of other options.

You might be able to get owner financing. If the owner doesn’t have an imediate need for cash, they might be willing to lend you the purchase price. You have proven that you can make your payments on time, haven’t you? Interest rates are very low right now. Perhaps if you can offer an atractive enough interest rate, the owner will agree.

You could also negotiate an extension of the option agreement. Sometimes the right to extend the agreement is given to one party in the agreement. You can always ask for an extension. Of course, if you wait until the day your option expires, you’ll be at an obvious disadvantage in your negotiations. One thing you can offer that might make an extension more attractive to your owner is an extra payment every month to be applied to your downpayment on the house. You would have to make this payment by a seperate check to get full advantage, but when the extension on your option is up, lenders may be more willing to grant you credit when you can show them that you’ve already put quite a lot down on the house.

  • Mike

Re: question on lease purchaced agreement - Posted by Phillip

Posted by Phillip on July 05, 2003 at 17:40:02:

Get a copy of your credit report. Dispute every thing. If you see anything you have paid off and still have receipts for, copy the receipt and send it to the credit bureau. Their address’s should be on the last page of the report. Tell them to remove the discrepancy immediately. If you do pay off a credit card, do not cancel the account. Do charge a very small balance each month or so and pay off immediately. Wow, you look responsable. When you cancel a charge account it looks like maybe you can’t handle your own finances. After all, what’s the first thing most people do when they can’t manage credit? snip, snip. One of our Loan Offices recently went to a conference on how to improve FICO scores. He reported that if you have 3 credit cards, one 0 balance 5k credit limit, one $4,000 with 5k credit limit, one with 1k balance 5k credit limit. These limits are adveraged and balances are adveraged. You are viewed as having 15k credit limit with a 5k balance owed. You are seen as having a 10k line of credit you can draw on should you get in a bind. Keep payments on time from now on. These are things we have discovered in the mortgage biz, and should help in improving your credit.

Good Luck,
Phillip