Just wondering IS there any bad sides to lease options?
yes, you can run into a greedy person and they will think you are a big dummy and try to steal your money and think you are so dumb that you won’t figure it out. I gave person 20,000 for option, to buy a home he had over price by 100,000. Told me 460,000 then when I moved in the larger homes were selling for 409,000. I told him whats up, I can’t sleep at night why did you do this. The agreement I signed however, calls it option money but nowhere says it is nonrefundable. I does say that when I take out option that the 20,000 will be used as a downpayment. Well I have always paid on time 1.700 a month with is about 300 more than other are renting for in the same area. None of my money goes toward down payment. I had so trouble this month and told him I would not be able to pay until Oct and if that wasn,t alright then give me back my money so I can move. He said no we then tried to buy home he got us a loan but said that it would be 3,000 a month I said we can,t afford that. and by the way how much are we financing 400,000 he said never saw in writing it was probably 460000 and he forgot about my 20000. this morning he served me with pay or vacant or and a demand for rent in same envelop. I think I shall get a lawyer asap this guy needs to be stopped.
You definitely need an attorney and quick. I hope that you have everything documented ???
I do have everything documented what kind of att. should I look for the last one I talked to didn’t have a clue. I think if I find another one I may have to tell him what to do.
you might try posting this on the Asset Protection, Legal Forum
What city and state are you in?
Yes, we are currently in a lease option and the seller just filed bankruptcy listing us as creditors and the 10k that we have already given him as an unsecured debt! Now we stand to lose the house and the money plus who knows how much in attorney’s fees! If you are new like we were don’t make the same mistake that we did. Have an attorney look at every aspect before you sign anything or put any money into it.
A lease option is simply a bogus sales contract. It violates the Due on Sale Clause. There is no protection if one of the parties files bankruptcy, or has a judgment against them, etc. That’s why I no longer use lease options, only NARS land trusts which have dozens of benefits over lease options.
Also, in a lease option, the lessee has an equitable interest in the property once they start receiving “option credit”. In states like Texas, the lessor must foreclose. In all trust transactions, if the lessee defaults, it is simply an eviction process.