Some mortgage companies will allow you to acquire property without paying any amount or down payment. This is called zero down investing. One way to zero down investing with lease option is to acquire property from a seller where you pay an option fee after you find a lease option buyer. When the buyer has pays you the option fee, you pay the seller their fee and you are left with some amount as profit. This is often referred to as a sandwich lease option, where you pay a lease option with no money out of your pocket.
The other option is not to pay the seller an option fee until you find an option buyer. The option fee collected is yours for keeps. This is zero down leasing in a way. Having cash reserve is however good to keep you going in case something goes wrong with the deal.
For homeowners, it is not yet clear how Obama’s foreclosure is going to bring change in the housing industry. The plan comes with an executive summary of the problems that foreclosure plan is going to address. One of these problems is inability by homeowners to refinance homes whose values have plummeted due to low interest rates. The summary also recognizes that almost 6 million homeowners are faced with foreclosure due to recession. Due to the epidemic of foreclosure, property values are dropping
Obama’s administration has launched a stability plan that will enable nine million families being faced with the threat of foreclosure restructure all the mortgages that they are currently financing so as to avoid the eventuality of a foreclosure. Reducing the cost of refinancing these mortgages is the primary blueprint of this stability plan. There are also attempts to strengthen initiatives that increase the homeowner’s confidence in the government.
Home ownership can be a very nice way to express your independence. But then there are many chances that you may end up walking away penniless once you are finished with your real estate agents. You may even be required to pay after this ordeal. This may make it necessary to delay selling your home, though with good advice you may by pass this option; profitably that is.
A good realtor will give you the advice to list your home on the website and direct to make a lease purchase agreement. This option will cost nothing but still markets the home. The lease purchase agreement will maintain the ownership of your home as well as be able to rent it out.
The lease purchase hybrid benefits both the seller and the buyer. The seller though can always keep all the rent if the buyer does not purchase the property.
A foreclosure should only be considered as the last resort for it can drastically affect your credit rating. In fact, a foreclosure can affect your credit score by about 200 to 300 points. This means that a credit score of 800 can be lowered to 500. This results in a negative credit score. After a foreclosure, it is mandatory that you should not receive any financing from a creditor. This means that you will not be able to get loans, buy a car or any financing.
Your low credit rating may also affect your ability to get an apartment as most landlords use your credit scores as a way to determine your reliability as a tenant. This also applies to getting phone numbers or cable. However, these detrimental effects can be reversed only after the 24 months are over but a foreclosure will only be fully removed after seven years.