You option should specify the purchase price, who pays for what closing costs, that the house is as-is, the puchase by date, etc. Your option is a valid contract and should be complete enough to be used by your closing agent to write up the settlement statement.
I am not 100% sure of what you are asking but will attempt to answer. Lenders want to lend to the person that fills out the application and No One else. If you buy the home it is yours. You can pretty much do what you want with it. Flip it Lease option, whatever. You will want to maintain the payment of the loan until such time that you have paid the loan in full by the new person getting financing or by refinancing with a new loan etc...... There is always (to the best of my knowledge) a due on sale clause. If the lender gets the impression that someone else is making the payment they may or may not utilize that option. I know a lot of guys make a living buying subject to where they just take over. ????
If I purchase a house with bank financing and then find a T/B to L/O it to, how can I keep the lender from finding out about the L/O with my T/B? How is the P/S agreement taken care of? Any experience with this type of transaction??
Thank you in advance
I wonder if you are trying to purchase a home as owner occupant. If this is the case, then I can see why the lender disagrees with your plan. Buy the property as an investor and declare your motive. I don’t see why a lender will tell you how to sell your home , if you qualify. You may also look for another lender who can understand your business.
You option should specify the purchase price, who pays for what closing costs, that the house is as-is, the puchase by date, etc. Your option is a valid contract and should be complete enough to be used by your closing agent to write up the settlement statement.
Brenda
Thanks, Brenda. The Lease Option should spell out the terms of the sale. No separate Agreement is required.
[addsig]
I am not 100% sure of what you are asking but will attempt to answer. Lenders want to lend to the person that fills out the application and No One else. If you buy the home it is yours. You can pretty much do what you want with it. Flip it Lease option, whatever. You will want to maintain the payment of the loan until such time that you have paid the loan in full by the new person getting financing or by refinancing with a new loan etc...... There is always (to the best of my knowledge) a due on sale clause. If the lender gets the impression that someone else is making the payment they may or may not utilize that option. I know a lot of guys make a living buying subject to where they just take over. ????
Good Luck
Thank you BMan,
If I purchase a house with bank financing and then find a T/B to L/O it to, how can I keep the lender from finding out about the L/O with my T/B? How is the P/S agreement taken care of? Any experience with this type of transaction??
Thank you in advance
Adam
I wonder if you are trying to purchase a home as owner occupant. If this is the case, then I can see why the lender disagrees with your plan. Buy the property as an investor and declare your motive. I don’t see why a lender will tell you how to sell your home , if you qualify. You may also look for another lender who can understand your business.
you can search for books / courses on the program.[ Edited by chumah on Date 05/27/2005 ]
Thank you Chumah,