Avoiding a home foreclosure is one of the most relevant topics in the real estate market, however, it is not common knowledge that there are still options available for foreclosed homes. The best option to take may be the Lease Purchase Agreement, or commonly called a Lease Option.

Receiving a “Foreclosed Homes” Notice

If you happen to be one of the many homeowners who receives a foreclosure notice, you may want to consider the Lease Purchase Agreement. Initially you just have to find a tenant to lease your home from you, with an option to purchase the home at the end to the agreed period or time; usually from 12 to 24 months. Just set a price for them to buy the house when the agreement is signed; this will allow you to set the price so you can save the equity and buy some time to recover.

If you Have a Tenant to Buy Your Home with the “Foreclosed Homes” Notice:

•    Avoidance of a foreclosure.

•    Since renters are paying less today due to the high foreclosure rates, you now have the opportunity to increase the monthly rent, in light with the purchase agreement.

•    A one-time payment, up-front as a non-refundable deposit, this is usually 1% – 3% of the sales price. The money that is given in exchange, and they signed the agreement, is non-refundable.

•    Quickly locate a buyer for your property, which is about ten times faster than trying to sell your home in a traditional manner.
•    Someone else will be paying the mortgage payment, and potentially a few hundred dollars a month more. Your burden that comes with foreclosed homes should become non-existent.
Lease Purchase Agreements usually work well in any real estate market and is one of the best options to go with in times of crisis.