Home Lease with Option (Tampa: short sales, foreclosed, rental)

[Native2UT]

I realize these aren't common and are usually met with negative thoughts. However, if I might be a good candidate for something like this (as a buyer), where would I go to find one? Do realtors have these listings?

[Pragmaticus]

I see on listings that say owner financing is available/considered or along those lines. But they are very rare. I am not sure if there is a key word in the MLS that would indicate this other than the description on the listing. Perhaps one of the realtors could chim in.

[algia]

Most sellers who are not doing short sales, or are foreclosed on, will want to sell up front for profit. You will have a hard time finding a seller that is not underwater looking to agree with a lease to own.

The "thing" to be most careful with this is the down-payment requirements...basically to not get sucked into having to put a large down-payment, and then have the "owner" take off with it...they all usually require hefty down-payments (I was entertaining this at one point too, but I dropped it when the down-payment request was bigger than a down-payment we would have had to put with a traditional loan). I wouldn't trust those Craigslist ads that say that. Take the address, and check public records for property history, that way you could find out what the property status "really" is. It will also tell you how much the property taxes are.

I am not sure these types of "sales" are handled through a Realtor. I have never seen such a listing on the MLS before. I've ONLY seen them on Craigslist.

[FloridaKash]

Don't so it. First, you should rent without commitment so you have a better idea of the area you want to live in.

Second, these types of programs require a significant down payment to get started. This of course sets you up to be ripped off thousands of dollars by people pulling a scam, saying they own the place, blah, blah for you to find out several months later they don't or the property is foreclosed upon.

Furthermore. Since credit is harder to get these days you could end up doing the lease to purchase option. Then when it comes time where you are required to buy the home but cannot due to tight credit, you would lose all money you invested into the property.

I suggest you rent first. If you are insistent upon purchasing a home, look into the many first time home buyer programs that are available out there. And be prepared to have several years of financial information available for the mortgage company.

[gulfer]

I get e-mails almost daily from people and companies that are doing this. Most properties are 150K and below. Most have purchased, fixed them up (enough) and are now willing to lease with option to buy, or owner finance. But as Algia and FloridaKash have stated, they are usually looking to for large downpayment and much higher interest.

Otherwise, craigslist does have some from time to time. But I would be very cautious as mentioned. There are very very few where everyones intentions seem on the up and up. Most are trying to make a lot of money at someone (YOUR) expense.

[SunsetBeachFL]

Thanks for this information. I'm not trying to hi-jack the thread but we are sellers that have offered owner-financing on a property. Since the only place to put this info on this particular area's MLS is in the description, it just doesn't come up unless someone reads the description. Seems like most buyers, myself included, use the min/max price option.

No matter, to the OP: get a an agent/broker and just pay them for their experience to help you through this process. Whether it is a consulting fee or some type of arrangement, they'll need to get compensated or you could end up with a real mess.

[Native2UT]

Thanks for the replies. I do wish there was a better system in place to protect both buyer and seller. Sounds like it doesn't exist. We've been in the Tampa area for a couple months now and I definitely know where I want to buy. The problem is our relocation here forced a short-sale of our prior home so we are inelegible for a mortgage now for 2 years (Fannie Mae/Freddie Mac rule). I really want to move from our current rental (lousy schools), but hoped it would be to a place we would stay in rather than having to move again. This 2 years is going to be a real test of my patience.

[TampaKaren]

Lease Options are IMHO good only for the seller or an extremely savvy buyer. There's a purchase agreement with a sales price a year in advance, a lease contract with the rental terms, and an option letter with an amount to deposit. Usually, the seller will ask the attorney to include that the option is non-refundable which is what the seller hopes you will do, e.g., pay rent for a year and when you either can't qualify for a mortgage or the house won't appraise, the buyer loses the option money.

And lease option is a selection category in the financing section of MyFloridaRegional MLS and visible to Listingbook customers...maybe others but I don't know for sure. There are very few lease options available at this time because people are buying, investors are cashing out or renting, or short selling which can't possibly sell on an option.

Sorry!

[chi_tino]

TampaKaren's got it right. You want an attorney to go through any document and review any potential opportunity for the seller to *********. For example, a single rent/lease check misdirected in the mail could nullify the contract and cost you your deposit/option.

These kinds of deals are like walking a highwire. It could work, but the consequences of failure are gruesome.

[algia]

I think rather than "jump" into something more damaging than a short sale...find a distraction to take your mind off of this for a bit...and it would be less expensive to move where the better schools are than to loose a deposit....think about it!

Originally Posted by Native2UT

Thanks for the replies. I do wish there was a better system in place to protect both buyer and seller. Sounds like it doesn't exist. We've been in the Tampa area for a couple months now and I definitely know where I want to buy. The problem is our relocation here forced a short-sale of our prior home so we are ineligible for a mortgage now for 2 years (Fannie Mae/Freddie Mac rule). I really want to move from our current rental (lousy schools), but hoped it would be to a place we would stay in rather than having to move again. This 2 years is going to be a real test of my patience.