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Life
after your short sale! YES, There is life after a short
sale! Think about what your life has been like for the past 6 to 12
months. You haven’t had enough money
to make your mortgage payment; maybe your other bills are also behind. You have tried working with your lender
but they have been unreasonable and unwilling to help you save your house. Perhaps you have had arguments about money
with your spouse and haven’t been the best parent because your mind is always
thinking, “how can I provide for my family”.
Worry and stress has had an affect on your health and you can’t
remember when you last had a decent night’s sleep. And, you are embarrassed and don’t want friends and relatives
knowing what is going on in your life.
Does this all sound familiar? A short sale can be a new
beginning for you. Many of my clients
have called me months after their short sale and told me that they are
sleeping again at night. One client
recently told me that he feels bad for the guys at work because they are all
going through what he went through last year, but now he has a fresh start
and is once again sleeping at night. The short sale is a solution to
the problem of what to do with your house and it does far less damage to your
credit than a foreclosure. It allows
you to get on with your life and start rebuilding your credit. It takes the stress and anxiety away
providing for a better relationship with your family. It is a new beginning, a fresh start. You
can repair your credit and be eligible for a mortgage in 18 – 24 months after
the short sale. Use this time to save
money and decide what price house you can comfortably afford. |
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Lease Options
They Can Work
For You
A lease option is an agreement between a buyer (that’s you) and a seller hopefully us at Kaper Properties, Inc. but it could be anyone. In the lease option agreement the buyer signs a document which give him or her an exclusive right to purchase a property before some future date at an agreed to amount. The lease option agreement binds only the seller, the buyer has a choice to make this purchase or not. Because of this the buyer usually pays the seller a fee. That fee is called the lease option fee and is normally non refundable. I should repeat this. The buyer does not get this money back even if they choose to not buy the property. Lease options are common among
buyers who would like to own a home but do not have enough money for the down
payment and the closing costs. A lease option may also be attractive to
buyers who are working to improve bad credit before approaching a lender for
a conventional loan. A lease option may also be a way for the seller to move
a property in a slow market. When a seller agrees to give the
buyer an exclusive lease option to purchase a property, the option price is
usually determined at the outset, but not always, and the agreement states
when the purchase should take place say, six months, twelve months or maybe
18 months down the road. Oftentimes a portion of the lease payment is used to
make the future down payment. This is called the rent credit. Seller advantages include
earning above-market rent, retaining all the property income tax deductions
during the lease-option period, and attracting buyers who will care for the
property because they are going to own it. Buyer advantages are smaller
down payments, fewer credit checks and the ability to live in the property
before a final decision is made to purchase. We at Kaper Properties can help
you purchase your dream home with this valuable financing tool! |
< … The Options You
Have … > In the meantime, renting or
doing a lease option are great alternatives.
It’s true, some landlords may not want to rent to you if your credit
score is low, but most landlords will still rent to you if you explain the
circumstances to them. I am a
landlord, myself, and I know that bad things happen to good people. And, if I understand the circumstances
that put them into this position, I’m willing to give them a chance. There are many, many landlords out there
that feel the same way. TIP: Even landlords who are looking for a great
credit score will re-consider if you have managed to save some money and can
pay 2 or 3 months rent in advance. Another great alternative is to
consider a lease option. A lease
option allows you to rent a home for a period of time with an option to buy
it in the future. Some sellers will
even give you a portion of your rent as credit toward the future purchase of
that home. That rent credit allows
you to start accumulating money toward your down payment. Lease options can be found through
realtors and houses for sale by owner.
If you live in SE Michigan, I have a great contact for someone who
specializes in lease option properties.
Call me and I’ll put you in contact with that person. The short sale can give you a new beginning, a fresh start. It’s up to you to make the most of it. Kathleen
Persha |
Rentals
- How They May Be The
Right Choice It’s wise not to rush in to major decisions after your short sale. Your best alternative may be to rent an affordable house until you can think more clearly about your future. You don’t want to put yourself right back into a financial problem. Think about downsizing for awhile. Sit down with your spouse or partner and list all your monthly expenses. Look for ways to eliminate items that are not a necessity. Compare that total to your income to determine what you can afford to pay for rent. Be wise about your decision. Spend less for rent than what is available so that you can put some money aside to either pay down other debt or start a savings account to buy another house in the future. Remember, renting is a temporary situation to allow you to take back control of your life. And, a home isn’t dependent on the size or newness of a house, a home is made by the people who live in it. |