Lease Options - Posted by Kevin Jenkins

Posted by Bill H on April 07, 2009 at 15:55:57:

Perhaps JT-IN will weigh in.

Not familiar with Indiana but there are problems with it in other states. They say it is not fair and equitable to the propsed new owner under the lease/option. The lease option fails and they get nothing for their “equity” position is the argument.

For instance will banks call the loan due if the title changes hands?..This is always a possibility when you are taking title subject to the existing. Will they exercise is highly problematical? Some will, some wont.

Or do they even need to know or have a right to know?..Of course they have a right. They have a contract that they expect to be followed. It is not with you…it is with the person who initially contracted with them.

One must remember that it is you, not them, who is violating the their contractural agreement.

That is is primary reason there is a DOS. It was caused by one person who said they could not. We all have found out differently.

Them what has the gold makes the rules.

Good Luck,
Bill H

Lease Options - Posted by Kevin Jenkins

Posted by Kevin Jenkins on April 07, 2009 at 11:52:06:

Are there any legal issues that are inherent in the lease option approach of real estate investing .I live in Indiana and I am familiar (in theory) of how the lease option programs work and have drawn up my own documents to do so.Being a former real estate agent I am somewhat versed in real estate law, but if there is something new on the horizon I would appreciate knowing the pitfalls of this method. For instance will banks call the loan due if the title changes hands?Or do they even need to know or have a right to know? Thanks :Kevin