Glenn(FL) 0 Report post Posted September 19, 2015 Hey Everyone, I was wondering if someone could answer a question for me. Many years ago I was a realtor for about 7 years. Sold a lot of houses. I was aware of lease option investing and various other creative strategies back then. I remember at least a couple of times asking mortgage brokers something to the effect of " can you get this tenant/buyer a mortgage with just a lease option contract or do they need a purchase agreement"? I just remember, more than once that no mortgage broker will ever get the underwriter to approve the mortgage without a purchase agreement. Basically, just a lease option agreement will not do. I hope I get a yes to this. Anyone here ever see a tenant/buyer get a mortgage when they exercise their option and not have a purchase agreement? Are I not creating liability for myself if i do not inform the tenant/buyer from the begining that they may not be able to get a mortgage unless they have a purchase agreement and that the seller very well might not agree 3 years later when they excercise their option to sign a purchase agreement then. Could someone please clear this up for me. This is the only thing hanging me up. My freaking conscious. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 19, 2015 Glenn, getting a purchase agreement is eventually a necessity. So when the t/b decides they want to exercise their option to purchase they can go an attorney or title company with their existing lease option agreement and have a purchase agreement drawn up off of that. Then they go to visit their mortgage guy and begin the financing process.These deals are options for the buyer, not for the seller. If the latter decides to back out of the deal, the buyer has an easy lawsuit that most any attorney would love to take. Trust me, you'll be bitten by an alligator before this happens. Share this post Link to post Share on other sites
Glenn(FL) 0 Report post Posted September 19, 2015 Thanks Michael. Ya see. This is what kept me out years ago. MY BRAIN. Worrying about what could happen. So silly. I'm still plunging ahead. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 19, 2015 Thanks Michael. Ya see. This is what kept me out years ago. MY BRAIN. Worrying about what could happen. So silly. I'm still plunging ahead.I have no brain. Therefore, no worries. Share this post Link to post Share on other sites