Hello,
I am new here and could really use some advice…this is long so please bear with mne! BACK STORY: I currently own a home in Florida with my husband (getting divorced) and my name is on the deed, not the mortgage. I will live in the marital home until May 1 when my ex will move into it, and since he is a fence sitter, he’s whining that he can’t decide whether he wants to sell it, rent it, live in it…blah, blah, blah, so the money will be tied up for quite awhile. In the meantime, I found a lease purchase house yesterday, immaculate, that has been on the market 321 days, LIFE ESTATE in 2006 (similar male names so I’m assuming a family member died?) according to the tax appraisers office website. The house is small, and I will only keep it as my primary residence for a couple of years, when the Florida market rebounds and I can sell it for profit. It will be a huge PITA to go through a conventional lending source, so I’d like to appoach the seller with an idea for seller financing. I can offer full asking price if I can avoid closing costs, large downpayment, etc. I have $8000 available. Any advice would be great! Thanks,
If your name and your name alone is on the deed why isn’t the decision to sell the property yours rather than your soon to be ex’s? Unless your divorce settlement gives the home to your husband or gives him a partial interest, I don’t see why your husband has any say in the disposition of the home. Is there more background to tell?
In the meantime, I found a lease purchase house yesterday, immaculate, that has been on the market 321 days, LIFE ESTATE in 2006 (similar male names so I'm assuming a family member died?) according to the tax appraisers office website. The house is small, and I will only keep it as my primary residence for a couple of years, when the Florida market rebounds and I can sell it for profit.
If the person offering the property on lease option only has a life estate, then there is an heir named in the will that has the beneficial ownership interest and the power to sell once the life estate holder vacates the property. Your attorney needs to be involved here to insure that your interests are protected. Make sure that you are dealing with the correct principles and that any lease or purchase contract you enter is valid and enforceable.
In most areas of the country, we are not expecting a full real estate recovery for three to five years. I don’t know your market, but I think expecting to profit in two years is a little too optimistic.
For quite a few folks, the cost of ownership is greater than the cost of renting the same property. If you consider the monthly mortgage payment, taxes, insurance, repair cost, and the cost of general upkeep, the total cost is usually greater than the rent you would pay to live in the same property as a tenant.
Only because you don’t plan to keep anything you might buy right now for more than a couple of years, I suggest you seriously consider renting for the next two years. Let your landlord pay the high property taxes and exorbitant hazard insurance costs, as well as the cost of any needed repairs. You just pay rent and save your money until you find something that you will live in for more than a couple of years. Use the time to build credit in your own name so that when you are ready to buy, you can get decent interest rates.
My name and my husband’s name are on the deed, his name is on the mortgage only, not mine. Sorry for the confusion. Also, I have quite a bit of credit in my name, and my credit score is good. I’d simply like to avoid the conventional mortgage route…been there for 4 homes already and it’s a big PITA. Plus I want to avoid closing costs, ream fees, etc. The homeowner owns the home free and clear with the life estate. What is the best road to ownership here? Thank You for any advice!
You need to investigate the life estate issue.
A life estate is not ownership. An individual with a life estate simply has the right to occupy the house for as long as that individual is alive or until that person relinquishes his/her life estate.
If the person who has the life estate is trying to sell you the property, that person my not be legally able to give you title.
You need to have your attorney involved here to make sure your interests are protected.