Posted on: 21st Aug, 2011 04:01 pm
I have a lease to buy option and it sounds a little strange. First of all there is 2 different mortgages from what I have been told by agent managing this deal. He tells me he holds the mortgage to the land or owns the land and the mobile home owner holds the mortgage too it. Is this a normal thing for this. I am just worried that there could be problems with this like taxes etc.
Thank You:
Jeff Lent
Thank You:
Jeff Lent
Hi jefflent,
It will depend upon you as to what type of mortgage you may want to take. As far as I know, in the lease to purchase option, the buyer and seller may agree to a purchase price now. Or else, the buyer may agree to pay market value at the time when the option is exercised. However, most buyers want to lock in the future purchase price at the time of the inception of the option. You can hire a real estate attorney to draw the documents and explain your rights, including those of possession as well as default consequences.
It will depend upon you as to what type of mortgage you may want to take. As far as I know, in the lease to purchase option, the buyer and seller may agree to a purchase price now. Or else, the buyer may agree to pay market value at the time when the option is exercised. However, most buyers want to lock in the future purchase price at the time of the inception of the option. You can hire a real estate attorney to draw the documents and explain your rights, including those of possession as well as default consequences.
I bought a house like that once, with a Land Contract. The owner of the property had the mortgage with the Lender, and I purchased it from him, and both of us were on Title. I paid him our agreed upon amount each month, and he paid his Lender their agreed upon amount. And you're right, taxes can be confusing, so get that clarified up front. With my contract, the other person paid the property taxes, and also received that write off. I paid all other expenses.
If I did a contract like that again, I'd have an Attorney review it first.
If I did a contract like that again, I'd have an Attorney review it first.
