U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-09-2010, 05:05 PM
 
15 posts, read 64,712 times
Reputation: 46

Advertisements

I have a small home I have been trying to sell and the market is just not there yet. I have been getting a lot of calls from people looking for a lease-to-purchse option. I would prefer to sell it outright but this may be another option. If I held the mortgage on a lease-to-purchase home are there companies that offer mortgage insurance to a prvate party?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-09-2010, 05:13 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,554,293 times
Reputation: 2198
There is no mortgage in a lease to purchase arrangement. The "buyer" pays a monthly rental fee, with possibly some portion allocated to the eventual future down payment cost. The buyer will get a mortgage when the lease term is up and it's time to finalize the actual purchase. Most buyers consider lease to purchase when they can't qualify for a mortgage now, but may be able to fix their credit over time and qualify later. Many don't. You should consult with an RE attorney if you are serious about this.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-09-2010, 05:19 PM
 
15 posts, read 64,712 times
Reputation: 46
I should have said that I may consider holding the mortgage for the right person, especially if they had been a good tenant.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-10-2010, 04:26 AM
 
Location: Florida
21,127 posts, read 22,147,503 times
Reputation: 25631
Do let me caution you even about the seemingly "best' buyers.
We now own again the same house we assumed sold two years ago.
IF you go through with this, do a land contract or rent to purchase and do not give up the deed until full sale.
Foreclosing is expensive and not what you would call a jolly experience

A tenant of mine just had to fly back home to evict non-performers of her 'rent to buy' deal(she had given them too generous terms......low down, monthly payments not much more than regular rent)
Rate this post positively Reply With Quote 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.


Reply
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 $104,000 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.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top