Lease Option on House ?

[Sknzfan]

Has anyone here had an Experience with the Lease/Purchase Option on a Home ?

I am Considering Selling my Home this way.....Pro's? Cons ?

The Couple that want's the House is Young and has NO Credit...they've paid CASH $$$ for Everything this leaves them with NO Credit.....

They want the House pretty Bad....to the Point of Moving into the County I live in and staying with Relatives to save up for a Down Payment !!

We've come up with a Price but I REALLY need the $$$ to pay off Credit Cards and the Current Mortgage....any and ALL help is appreciated.....

I would/will be drawing up a Contract...that will Penalize them after a Year if they do "NOT" Purchase the Home...as in the 5% Commission a Realtor will be getting to sell the House....

Thanx

Sorry , I should note that the House has been on the Market for ALMOST Two Years !

[Thiebear]

This is all you need to know:

Does this help you or them? If them, why?

Would someone buy your house straight up in the next 90 days?

Are you in a situation where you can't wait 90 days?

Are you in an area that has a good turnaround on houses?

** Note: I plan on helping people in my area "Before" their house gets foreclosed on... but I will be doing this when "I Can" afford to help, not when they need it and I can't.

quote for a internet lookup:

[qoute]

LEASE-OPTION PROS AND CONS FOR HOME SELLERS. Advantages of lease-options for house and condo sellers include (1) there are always more lease-option buyers than sellers, (2) lease-option tenants are above-average in quality because they have option money and rent credit money at stake if they don't buy, (3) lease-option tenants will pay higher than market rent (because they get a partial rent credit toward the purchase price), (4) if the tenant doesn't buy, the landlord keeps the forfeited option money and rent credit, (5) lease-option home buyers will pay top dollar for the option price and (6) during the option term, the seller continues to enjoy the property's income tax deductions.

The only seller disadvantage for lease-option home sellers is they don't get a cash sale until the option is exercised by the buyer.

LEASE-OPTION PROS AND CONS FOR HOME BUYERS. Advantages of lease-options for house and condo buyers include (1) low up-front cash requirement for the option money (typically 1 percent to 5 percent of the option price), (2) controlling a lease-option property is less expensive than owning it so the longer the lease-option term, the better for the buyer, (3) lack of homeowner income tax deductions is outweighed by the rent credit toward the purchase price (anywhere from 10 percent to 100 percent of the rent), (4) the buyer can try out the house or condo before buying and (5) the lease-option buyer can move in within a day or two after the agreement is signed.

The only buyer disadvantage is the lack of tax deductions. But the buyer's rent credit is really a "forced savings account" toward the down payment, which is worth far more than homeowner tax deductions for mortgage interest and property taxes.

[Phat Hog]

I don't know how much CC debt you are in, but you can get a size-able down payment on a lease option. $10K is not out of the question. They also pay your mortgage during the lease period (or at least they should - else you don't want to do the deal). One thing you may want to consider is that if your house doubles in the next year (or for however long the lease period is), you don't reap those benefits because you've essentially locked in unless they default. Generally speaking, it's not a bad deal for a seller, but then that all depends upon your own personal situation.

[Sknzfan]

Thanx for the Replies Guy's....I just want to make sure I Cover my Tookiss....

While STILL Selling the House...

Thanx again