| A lease with option to buy is typically for people who | | | | There are two disadvantages associated with a lease |
| want to buy a home but cannot meet the traditional | | | | with option to buy. First is the financial risk. When a |
| guidelines set forth by banks and other lending | | | | decision is made not to exercise the option to buy, the |
| institutions. If you recently filed for bankruptcy, | | | | down payment (or security deposit) is forfeited along |
| foreclosed on your last home, sold your last home | | | | with any portion of the lease amount that was set |
| through a short sale, have bad credit, or have too | | | | aside for the option. |
| much debt then you may want to consider a lease | | | | In the following example, the buyer decided against the |
| with option to buy. | | | | option and did not purchase the property. In total, the |
| This article assumes you know what a lease with | | | | buyer 'gave' $7,800 to the seller. |
| option to buy is. If not you may want to read "Lease | | | | Term of Lease: 24 months |
| Option To Buy - What Exactly Does This Mean?" | | | | Total Monthly Lease $2,000 ($1,800 for the lease and |
| Before you decide that a lease with option to buy is | | | | $200 for the purchase option) |
| right for you it's important to know the advantages and | | | | Security Deposit/Down payment/Escrow Money: |
| disadvantages from the consumer point of view. | | | | $3,000 |
| ADVANTAGES OF A LEASE WITH OPTION TO | | | | Two hundred dollars a month for 24 months is |
| BUY | | | | $4,800. Add this to the security deposit for a total of |
| The number one advantage is the ability to secure a | | | | $7,800. Forfeiting this kind of money is a huge |
| home today with bad credit, recent bankruptcy, | | | | disadvantage. |
| foreclosure, etc., while working to improve your | | | | The other disadvantage is the lack of inventory |
| financial situation over the next year or two when you'll | | | | available to the buyer. Most people who are looking |
| be able to qualify for regular financing. Since home | | | | to sell do not want to get involved in lease with option |
| sellers do not have to follow the same qualifying | | | | to purchase agreements as they need to sell in order |
| guidelines that lending institutions must follow they can | | | | to purchase their next home. |
| make their own decisions and this usually benefits the | | | | Overall, it's not unusual to find a buyer who looked at |
| buyer. | | | | over 100 homes before they found a seller who was |
| A second advantage is you have a higher chance of | | | | willing to do a lease option. The good news is there |
| negotiating better terms because you're dealing with a | | | | are plenty of sites on the Internet who specialize in this |
| human being, not a bank. As a general rule landlords | | | | niche market. A little research and persistence pays |
| and home sellers make more decisions based on | | | | off. |
| emotion as compared to a lending institution. When | | | | In summary, a lease with option to purchase |
| things look bad on paper there's always the ability to | | | | agreement allows certain buyers the advantage of a |
| talk your way into a more favorable position. | | | | second chance at home ownership, negotiating better |
| The third advantage is you are not obligated to | | | | terms through emotion and not being obligated to carry |
| purchase the home after the lease period ends. This | | | | through with the purchase. The disadvantages are |
| is especially advantageous in a declining market. | | | | financial risk and lack of inventory. Now Pay Close |
| After all, what could be worse than having to purchase | | | | Attention -- |
| a home when its value is substantially lower than what | | | | Do you have an Ugly house you want to sell? On the |
| you're paying? | | | | next page you will find someone who will put cash into |
| By far, though, the biggest advantage is securing a | | | | your pocket for that broken down wreck of a house. |
| home when the bank won't give you money. On the | | | | ==> I Pay Cash For Broken Down Ugly Houses |
| flip side, though, there are definitely some | | | | Nationwide |
| disadvantages to a lease with option to buy | | | | So if you own a broken down house you can sell it to |
| DISADVANTAGES OF A LEASE WITH OPTION TO | | | | Payton Lowe for cash. I strongly sudgest you contact |
| BUY | | | | Payton Lowe on the next page before it's too late. |