Can anyone do a lease option for me?

I am in a home now that I am paying a lease option on. The person that actuall owns the home wants out. He wants me to get a loan and pay off the mortgage (he is actually calling the lease option due 18 months before it expires).

I need to find someone who will take out a mortgage, pay off the other guy and resign a lease-option with me.

The home is 6 months old, the value is $250k and the debt on the house is $215k (85% LTV).

I had a business failure and my credit is crap, but me and my wife have both been on our full time jobs for over 15 years and we make about $83k between us per year.

If anyone is interested, please let me know.

He wants me to get a loan and pay off the mortgage (he is actually calling the lease option due 18 months before it expires).

Huh? You have a signed agreement giving you the option to buy the property during a specified time. How can he legally call the option due earlier? I would re-read the contract you have as it may have a clause that allows him to do this, but it sounds fishy to me. Also, what does your lease say?

Sounds fishy to me too.

Did you ask him why does he wants to sell now?

Diana Fontanez

Hey Help with Lease Option,
I recently had this same circumstance. I’m not sure what the details are regarding the agreement being called early, i.e. whether the seller has this option in the agreement? But in my case, the seller didn’t, but thought they would demand it anyway.
I requested a sit down and figured out what monies I would be out to finish this deal sooner than agreed;

You may want to figure all your additional costs to finish this deal sooner than agreed, add 10% and deduct that from the current amount owed. (or the 10% could be 20%, 30% or 40%)

What additional costs you have will depend on your agreement; are you getting any credit toward the balance from your monthly payment? Are you getting the original loan balance paydown? How much will the home appreciate from now until then? Purchasing the home earlier, with a lessor value than it would be 18 months from now will have you completing the deal with a lower LTV, possibly costing more in points and interest.

If the seller agrees to you completing the transaction now useing the numbers as they would be when you were supposed to complete the deal, than the LTV may now be such that you can obtain financing, or at the very least will make it more lucarative for an investor to be involved with.

AS ALWAYS, I SUGGEST YOU SEEK THE ADVICE OF AN ATTORNEY BEFORE MAKING A DECISION. (No, I don’t suggest this because I am an attorney 8) I only do so because it has saved my bacon in the past)

Good luck, go get’em!
Ray