Is A Lease Option The Answer For The Salt Lake Housing Market?
With the many problems of qualifying for a Mortgage Loan in the Salt Lake Housing market a lease option may be an answer for those of you that are cash strapped, or need a little time to patch up some credit dings that show up on your credit report.
Last weekend Chris Sloan, one of our owners, the Tooele Branch Broker and President of the Utah Association of Realtors wrote about a very popular new home buying tool; what used to be known as a lease option.
Heres some of what he said about using this creative way to buy a Utah Home.
"With larger down payments and higher credit scores required to obtain mortgage financing in today's post-subprime era, an increasingly popular rent-to-own agreement may be the solution for cash strapped buyers looking to take advantage of today's competitively priced Real Estate". Read entire article.
What I almost missed in reading the article, was that not only was the Rent to own a good tool for someone wanting to buy a home in Salt Lake, it could solve the problems of some home owners in SLC that have homes for sale, and need a way to compete with short sales and foreclosures.
Read the article and see if you can use this tool to solve your Real Estate problem.
A couple of things I'd like to have you pay real attention to in Chris's article.
They have to do with title.
First, if you are the buyer, get a preliminary title report so you can make sure that the numbers make sense.
The amount owed by you, the home buyer when the option is to take place must be sufficient to cover the amount owed the lender. Either the Title Officer or your Realtor can help with those numbers.
Secondly, insist that an escrow company collects your rental payments and dis-purses first to the lien holders and then to your landlord.
Obviously this will eliminate having your optioned home foreclosed on for non payment.
Yes, It has happened.
I hope this has given you some ideas about how to buy a Salt Lake Home.
If you don't have a Realtor to help you with this concept, or feel you'd like someone watching your back, we'd like to apply.
Check out our website @ Salt Lake Real Estate to see how serious we are about this business.
If you just want to talk, call us at 801-567-0946 .
We'd love to talk lease options, or anything about the Salt Lake Housing market.