Lease Purchases? Pros and Cons

"Lease Purchases" are another way to help families who have experienced some form of financial setback. There are risks.  What works and what doesn't?  Feedback from buyers, sellers, and brokers welcomed.
  • July 10 2009 - Tulsa
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Answers (4)

Profile picture for real estate mike
In my opinion, rent, change your financial habits, build up credit and savings, then you're ready to buy. Lease purchases typically have large deposits. Why give someone your savings to rent?
  • July 10 2009
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Profile picture for Verbal
There can be advantages, but there is also the credit worthiness of the landlord to consider.  If the landlord defaults on the mortgage, chances are very good they are out the amount of their deposit.
  • July 10 2009
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Profile picture for sunnyview
I would never do a lease purchase as a seller unless the deposit was significant up front to cover any damages. If I did agree to a lease to buy, I would also require that the buyer refinance the purchase amount within 2 years with no refund of the deposit if they were unable to close by the agreed date. Stringing things along does not benefit the seller in most cases and open the purchase contract itself up to problems.
  • July 10 2009
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If the buyers (renters) can not obtain the mortgage this time, I don't think they can in next 2 or 3 years, don't try the uncertainly ways.
  • July 10 2009
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