Can you do a Lease Option to purchase a home as primary residence that is a Short Sale Property. Any one have information on this subject please post could help a lot of people . I live in Monmouth County NJ and pay a lot for rent is this possible
No, you cannot. Banks are not in the property management business.
A L/P or L/O is merely a method in which to get financing (temporarily) on a home which you plan to buy. Banks will not typically participate in such a method. On a short sale property, the bank wants to be rid of the non performing loan to get their stockholders satisfied. Nothing irritates bank stockholders more than a non performing note and a piece of property sitting on their proverbial shelf producing nothing but head aches!
When I look for this type of financing, I go to the seller who has a nice property but is in a desperate financial situation. Then the seller will make choices and decisions that he would normally not make, such as allow you to make up back payments, put the house in a trust where you are beneficiary, and take over existing mortgage payments; resulting in zero credit needed financing…these types of deals are everywhere for the asking!
Also, lease options/purchases are everywhere too, for the asking…find a vacant home or a long distance number on an ad…find someone who has already moved and perhaps owes more than he can sell the house for with reference to the current appraised value. Offer a long term lease purchase agreement allowing time for the markets to rise and the existing mortgage principal to pay down, resulting in building equity for you to ultimately refinance if you wish.
I’ve done hundreds of both of these types of deals and it is no credit check financing. Don’t look to the banks for these; look to the sellers who have already moved…they will become desperate and ultimately say yes. The value of a house in an upside down market is NOT the appraisal value…it is a perceived value of a house plus existing financing in place which you can take over which gives value to the house.
That is why I can find these deals, contract them, then re-sell at a premium offering private terms because I have negotiated private terms when I buy and wrap those with private terms plus profit when I sell.
Hope this helps.
AJ290 is correct if the bank does a lease option they will be responsible for the property and that includes all repairs and maintenance that is needed as you are renting. They definitely WILL NOT do this.