Posted on: 05th Nov, 2009 08:38 pm
Is agreeing to a two year lease to stay in a home with the option to buy back from the investor who saved it from going into foreclosure a bad idea? I will also be paying 50% more in rent on what my mortgage used to be and I know his loan on the property is right around where my original mortgage payment was. I do realize that he is 'investing' in the property, saving it from foreclosure, but that amount of 'rent' is far over and above what this house could rent at under normal circumstances. A two year lease seems like a long committment and I don't want to make a mistake. We also have not discussed what the buyback 'options' would be.
If you are not comfortable with the deal, then I would suggest you not to go for it. You were not able to afford the mortgage. In that case, I don't think you would be able to pay a 50% higher rent. If you want to avoid a foreclosure, you can opt for a deed in lieu of foreclosure. Thus, you won't be liable for the deficient amount. Though your credit score will fall, you can take steps to rebuild your credit.
It depends on the reason it's currently going into foreclosure. Is it because you can't afford the payment? Or was it related to an isolated Medical event?
If your budget allows you to pay 50% more, and you really really like the home, and the Investor is giving a significant portion of that 50% back to you when it's time to exercise the option - I'd say it was a good idea (as long as you were resolving your credit issues during that timeframe).
However, we don't know enough about your personal financial situation to make informed opinions or suggestions.
If your budget allows you to pay 50% more, and you really really like the home, and the Investor is giving a significant portion of that 50% back to you when it's time to exercise the option - I'd say it was a good idea (as long as you were resolving your credit issues during that timeframe).
However, we don't know enough about your personal financial situation to make informed opinions or suggestions.
