U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
 
Old 03-28-2009, 01:26 PM
 
Location: Keller, TX
1,815 posts, read 2,252,729 times
Reputation: 1142

Advertisements

Hello,

I was wondering how it affects things if you break an apt lease in order to buy a house. I'm considering buying a house before the Dec 1st deadline for the tax incentive. The reason I'm still somewhat reluctant at this very moment is job security. (The company I work for has had layoffs recently.) I want to give it a few more months to see how things are going with the economy and if I feel like my job is secure then I'll probably want to purchase. Problem is my apartment lease is up in July and the shortest lease I can sign is 9 months. That would put me past Dec 1, and so I'd probably need to break the lease if I decide to buy. Is that a huge ding on your credit to do something like that when you are getting ready to close, or is that common? I have over an 800+ credit score, but am worried there might be issues at closing if I break the lease in order to buy a house. Has anyone encountered this? Or that is familiar with how it affects your credit? I really appreciate any help that the forum can provide
Quick reply to this message

 
Old 03-28-2009, 02:41 PM
 
231 posts, read 548,707 times
Reputation: 124
I only ever lived in 2 apartments, but both of them had the option of rolling over to a month-to-month agreement after the first lease had been completed. It would have been an extra $50-$100 a month, but wouldn't have locked me into a long-term lease. I never went with this option, but I know some apartments offer it.

Also, both of them had buyout provisions for buying yourself out of the lease instead of having to pay for the remainder (although they were pretty expensive).

Are either of these 2 options available for you? Both would be a lot better than breaking a lease.
Quick reply to this message
 
Old 03-28-2009, 03:24 PM
 
Location: Keller, TX
1,815 posts, read 2,252,729 times
Reputation: 1142
Yeah- going month-to-month is an option. It's just tough because I'm not even positive if I'm going to purchase or not... I guess it pains me to dump extra money when I'm not even sure at this point, especially since I know they will raise my rent the standard 5% on top of the additional rent being paid for going month-to-month. But that is always something I could do. Guess I need to be sure that I'm serious about buying before I decide to do that.

Buying it out is probably an option, although I haven't discussed it with the apt complex people. It would be expensive to do and something I'd want to avoid.

I think I'm just in a bad spot no matter what I end up doing, lol. Thanks for your response.
Quick reply to this message
 
Old 03-28-2009, 10:06 PM
 
231 posts, read 548,707 times
Reputation: 124
Yea, it can be tough to find a good lease that makes it easy for you to move out when you're buying a house. Before I bought my house, I had a 6 month lease and was just planning on going month-to-month if I wasn't ready to buy by the time my lease expired. Luckily, I timed it perfectly (closed on February 20th and lease expired on February 28th).

Maybe you can ask your apartment if they'd go for a shorter lease at a price between the month-to-month and a 9-month lease? It never hurts to ask. At least you have a couple more months to think about it...

FWIW, I was in a similar situation (my employer had layoffs about 3 weeks before I closed. It was a tough call on whether I should continue, but I went ahead with it because I felt my job was pretty secure for the time being.
Quick reply to this message
 
Old 03-29-2009, 08:32 AM
 
Location: Keller, TX
1,815 posts, read 2,252,729 times
Reputation: 1142
It really is tough to know what to do. I look at all the great things in my favor- great credit score, some money in savings, interests rates are low, total buyer's market, low house prices in TX in general, and I qualify for a TX Vet loan from when I was active duty military so I don't even need to come up with a downpayment so I can keep that money in savings. But the fear of losing my job seems to outweigh all the good things. I'm a single woman and if I lose my job I worry that it would be financially devastating. Plus I'd be tied to this area because of the house. (Keller isn't exactly centrally located in regards to Dallas and Fort Worth, which is where a majority of jobs are.) I am in this area simply due to the location of my job, so if I lose that then I really feel like it will be tough to go somewhere else without a large commute. Guess I need to do some soul searching to figure out what I should do.
Quick reply to this message
 
Old 03-29-2009, 10:42 AM
 
305 posts, read 1,016,230 times
Reputation: 133
I have a lease. We bought a house. In order to break our lease legally, we had to give landlord a copy of the bill of sale for the house and pay a fee (equal to one month's rent). So instead of paying 8 months of rent to finish our rental lease and move into our house, we only had to pay 1 month's rent.

It all depends on whether or not you have that option in the current lease you've signed. But most leases do have that option.
Quick reply to this message
 
Old 03-31-2009, 07:09 AM
 
34 posts, read 185,908 times
Reputation: 33
i think it all depends on your landlord...we are in an apt complex and they just had us sign the renewal papers because our lease expires in may...they buy out opetion wasn`t so bad...it equals 2 months of rent...which in our case is 1200.. we are in the process of getting preapproved and by the time everything finishes ,meaning finding the right home,closing,etc...it will probably be august...i am thinkin..so i told them the possibilities of us having to break the lease but didn`t wanna go month to month because its like from 600 to 875...made no sense...so they said if we have papers to prove that we are about to close and when then they may even waive the buy out...since we are not breaking the lease for any other reason but to move into OUR OWN home...so like said up there it all depends who you`re dealing with...good luck to you...job security is kinda hard to have right now because you never know details of whats really going on in your company...it think it mostly matters is that you`re in a line of work thats always gonna be needed...thats the only type of job security one can have right now...for example...my husband is a truck driver...if one company laids him off there`s always gonna be truck drivers needed elsewhere...
Quick reply to this message
 
Old 03-31-2009, 07:15 AM
 
Location: Lemon Grove, CA USA
1,055 posts, read 2,240,483 times
Reputation: 893
Quote:
Originally Posted by teebopop View Post
I have a lease. We bought a house. In order to break our lease legally, we had to give landlord a copy of the bill of sale for the house and pay a fee (equal to one month's rent). So instead of paying 8 months of rent to finish our rental lease and move into our house, we only had to pay 1 month's rent.

It all depends on whether or not you have that option in the current lease you've signed. But most leases do have that option.
Pretty much the same for me. The penalty for breaking the lease was to pay one additional months rent plus I had to give written notice 30 days prior and all the usual inspections and cleaning and whatnot.

You can find out what situation you are in easy enough by reading your lease agreement or if you are the trusting sort call the leasing office and ask.
Quick reply to this message
 
Old 04-01-2009, 04:25 AM
 
Location: Maine!
467 posts, read 1,081,817 times
Reputation: 309
we're kinda in the same boat. our lease is up at the end of july. we talked to our landlord and we can either pay to end our lease or find someone to take over the lease (that would be fabulous). our realtor has even made deals in the past where the seller paid off the buyer's lease. we're also entertaining the idea of a "rent back agreement" so we wouldn't have to break the lease and move when time was up.

good luck, OP.
Quick reply to this message
 
Old 04-01-2009, 01:28 PM
 
Location: Texas
447 posts, read 1,214,343 times
Reputation: 196
Since you are in Texas, be aware that Texas has one of the strongest Apartment lobbies around. The leases are very hard to break unless you pay a large percentage out. If you break a lease in Texas, they will report it to the credit bureaus.

Good Luck!
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top