existing Mortgage and Lease Option

[Guest Diver]

Hi Michael,

Nice to be aboard. I'm the Jack of all trades and the master of none.

Anyway I think I know the answer but sometimes I have to told.

Question is are there any homeowner mortgages out there that I need to avoid

when doing a lease purchase?

Thanx, Diver

[Jason (AL) 1]

Whenever I bought sub2, I stayed

away from any government-backed/homeowner-assisted mortgages.

 

As with lease options, I'm sure the same would apply.

[MichaelC 160]

With a lease option, since the title isn't changing hands we can be a bit more footloose when it comes to mortgages. While it is a possibility that an option might trigger the DOS clause, the probablilty of this happening is remote. Of more concern would be making sure that whatever the underlying mortgage is, that it is being paid each month.

[Guest Diver]

With a lease option, since the title isn't changing hands we can be a bit more footloose when it comes to mortgages. While it is a possibility that an option might trigger the DOS clause, the probablilty of this happening is remote. Of more concern would be making sure that whatever the underlying mortgage is, that it is being paid each month.

 

Thanks Jason and Michael,

I figured as much. Jason I'm versed in Sub2 also and consider the Sub2 and LO my one two punch.

And hey Michael I make a mean lasagne to. Diver

[MichaelC 160]

. . .

And hey Michael I make a mean lasagne to. Diver

Spaghettios and Cheeze Wiz ain't lasagne.

[-Tony- 0]

Question is are there any homeowner mortgages out there that I need to avoid

when doing a lease purchase?

 

I would have to say yes......any in TX

 

As for gov't backed, I did 2 the second one I assumed @ 5% for my personal home and left thier VA (veterans affairs) certificate in place. I don't think I would have a problem with any gov't insured loan. Shoot the VA loan I assumed was a washington mutual loan (I did do a formal assumption though) but had 4 yrs left on a 5 yr slo.

 

Fannie may has here own L/O program now.

[Jason (AL) 1]

Yes, VA & FHA loans are fine in sub2 deals.

No problems there.

 

What I was referring to was the government grant-type loans.

The stipulations and verbiage outlined in those documents

are super strict. For example, the borrow must live in the house

for a certain period of time. The ones I've came across, generally, is

a minimum of 5 years.

 

They keep a check on whether or not

the original borrower(s) is still residing in the home and

they'll call the loan due in a heart beat, should said property were

to be sold/rented, etc. etc.

[-Tony- 0]

gotcha, I would not mess with those either