LO Question
I have a question. Let's say a person is buying LO property to be owner occupied.
I am somewhat confused, since I am of the understanding a LO isn't really your property until the terms have either been fulfilled or refinanced before the seller will hand over the title. I have read in some REI articles a chance does exist where the optionee could get a loan on the property before the terms or refinancing has been completed by receiving an equitable interest loan from a lender. Has anyone heard of this, if so, will a seasoning of the LO be required, What are the circumstances in which the above scenario could take place.
Appreciate Your Help.
Cheryl
I am not sure I completely follow your post. What would secure the loan? The optionor would not likely let an optionee secure a loan with his/her property until the title changed hands (i.e. optionee walks with money). If optionee walked up to a lender and showed the option agreement they would not likely lend since optionee might not execute the option. The only possibility I see is if the option rights could be temporarily transferred to a lender as security for a loan. If you can, please give the RE articles where this is discussed.
Thank you for the information, this did answer my question. Also I searched through the archive, perhaps not using the correct key words thus only giving to me subjects that were close to revelancy of the search but nothing within the content.