Buying the house were leasing - Posted by Kim CA

Posted by Eric W.(WA) on February 11, 2002 at 13:55:58:

Kim,

Although you just signed a new two year lease, I suggest trying to add an addendum which outlines your “option to purchase” the property. I would definately present this to her sons (or however has controling interest in the property).

If you are willing to put on a new roof and build/repair the garage, then in lieu of a “down payment” or “option consideration fee” you should offer these major repairs. Tell them that if you do these repairs and then don’t excercise your option to buy, then they get a new roof and garage.

Try to negotiate a rent credit so that some portion of your monthly lease payment goes toward your purchase price. Essentially you are saving for your downpayment. This will give the bank something positive to consider when you got to refinance and cash the owners out of the house (in say, 2 years).

There are a number of different ways to structure an owner finance purchase. This Lease Option is just one suggestion.

Hope this helps.

Eric W

Buying the house were leasing - Posted by Kim CA

Posted by Kim CA on February 11, 2002 at 10:17:21:

We have been renting our house for 2 years and have just signed another 2 year lease. We have talked with our landlord many times about buying the house and she says that she will talk with her sons, but she never seems to have gotten around to it. She is VERY old and has given controlling interest in the house to her children. We also have a bit of a language barrier, she is from China and it’s VERy hard to understand her, and it seems she has the same problem with us. She needs the monthly income, so I was wondering if anyone out there knows how we should write up a proposal to her and her sons about us buying the house. I’m pretty sure she owns it ouright (how would I find that out) and I know know does not really have the money for fixing things (we’re going to need a new roof on the garage soon). Would those be good selling points? I think that we could ask her to finance us… we just keep paying her monthly and now we will take care of all repairs. But how do I word this? Do I get the deed? UUUGGGHHH, obviously I’ve never done this before, and I thought that it would be good to start on our house.

Thank you in advance
Kim