What do people think of lease to own deals?

[cwb124]

We are thinking of doing a short sale on our house because we are 40k (at least) under and see absolutely no signs of improvement. Our house is also very small and in a crappy neighborhood.

So anyway, it is not likely we can get an FHA after the short sale, although I am looking at that option.

So another option I am looking at is a lease to own deal for 1 or 2 years until we can get an FHA. There are several in my area that are very attractive houses with the owners entertaining lease to own options. I would absolutely get a lawyer involved but what do people think in general? Do the leasers get ripped off usually?

How should the arrangement be setup and what should the pre arranged sale price be? Should it be closer to today's market price (that would be preferred by me) or should it be market price in two years?

Any tips or advice would be appreciated.

[faith]

Originally Posted by cwb124

We are thinking of doing a short sale on our house because we are 40k (at least) under and see absolutely no signs of improvement. Our house is also very small and in a crappy neighborhood.

So anyway, it is not likely we can get an FHA after the short sale, although I am looking at that option.

So another option I am looking at is a lease to own deal for 1 or 2 years until we can get an FHA. There are several in my area that are very attractive houses with the owners entertaining lease to own options. I would absolutely get a lawyer involved but what do people think in general? Do the leasers get ripped off usually?

How should the arrangement be setup and what should the pre arranged sale price be? Should it be closer to today's market price (that would be preferred by me) or should it be market price in two years?

Any tips or advice would be appreciated.

Hello and welcome to this forum,
I think it's best for you to do the Short Sale instead of leasing to own.

I've researched this subject just for you, please click the link below and read it carefully, hope it helps. If you need to know about Short Sale, I also included the link for it below.

Lease Option Pitfalls to Avoid | Bill Bronchick

Rent to Own Investment is the New Go to Real Estate Strategy The Offical Blog of Real Estate Investor – The Authority in Real Estate Investing

The link below discuss each topic about lease to own, please click each topic:
Lease Option | Real Estate Investment Without Risk

Short Sale Outposts:
Short Sale Outpost - Loan Modification Forum - LoanSafe.org

Hope this helps.

[cwb124]

My apologies, I was not clear. I plan on short selling my house and then lease-to-own our next house until we can finance it with an FHA. Your links still apply though, and I will read them over. Thanks for your reply!

CB