Let’s face it most homeowners today don’t want to short sell their homes because they don’t want to start paying rent again, for the first time, or EVER! Most homeowner’s will face challenges in getting landlords to rent to them and certainly in buying another property. To most homeowners this feels like taking a giant leep backwards and is embarrassing. Homeowner’s are going to great lenghts to keep their homes( loan mods, hard money, personal loans etc). I am the first to congratulate you if any of these methods work for you. I do understand the need to maintain your piece of the american dream. Even if it’s turned into a gut wrenching nightmare of late. The goal is to hold on if you can.
For those of you who might not be so lucky and need to sell your home, I would like to offer you a few more options. Consider looking for properties that offer the following:seller financing, lease options, and rent to own,etc. If you look in your local papers you will see ads with the following language: easy qualifying, owner will carry,seller financing, lease option, or rent to own. These homes are typically sold, or leased by investors who are looking for tenants that can at some point in the future buy the home. Many of these investors are happy to entertain the credit challenged home buyer’s and may be willing to sell or rent the house to you on contract. Deals of this sort can be structured so that you are building equity from day one. This allows you as the tenant buyer to fix the issues at hand(damaged credit,BK, lack of down payment,Etc) while you are living in the property. Typically deals are structured so that a portion of your rent will go to building a down payment, paying the mortgage, etc. The investor get’s a steady cash flow and typically doesn’t have the maintenance headaches that he/she would have with a regular tenant. Since you are leasing to buy you would take on a more active roll in the maintenance of the property.
Make sure to consult knowledgeable legal counsel before entering into an agreement of this type. You should also consult your local realtor and ask he/she if they know of any investors that will sell, lease or rent properties in this manner. If so ask them if they could assist you in finding a property like this. Smart investors are always looking for ways to get their homes rented, sold, leased quickly which allows them to move onto the next deal. Some may say no but all you need is one yes to be successful. Happy Hunting
Will Wheaton, Realtor/ Foreclosure Specialist
888 208 8839