Lease purchase questions

[sonogirl]

I have been working on my credit lately and being very aggresive with paying things off and getting them deleted. I am renting in a condo/ Townhouse community and would love to buy one of the townhouses. I am looking into FHA and I would have a year w/no lates in Oct 2008. I have alot of baddies due to come off this summer so hopefully my score will rise even more I have no Public records just some lates and old collections. My scores are TU:540 EX:550 EQ:544 all FICO.

My question is should I look into a Lease Purchase agreement that would allow me to exercise the option to buy in one year? There are a couple Townhouses in my community that are open to Lease Purchase. I have about $6000 saved so far and still saving hope to have another $12000 in a year.

I know I could get FHA in Oct 2008 ,but I would like more time to put a larger down payment. MY DTI and employment are ok. I just don't know who I would go to to help me set something up, the realtor I was talking to didn't seem to interested in helping me with this even though I said when I purchased I would use him. Does anyone know how I would start this process and who I should contact I live in New Jersey, Burlington County Any help would be great. BTW I've already educated myself with  Lease Purchase specs and I know what to look for I just need a professional to draft papers, talk to realtors etc. Thanks in advance guys

[Anonymous]

what you are describing is a rent with option.

A LEASE/PURCHASE actually has a purchase contract on the property (it took me 2 years to close one of these for someone with crappy credit - and headaches along the way that were close to igraine-level (couldn't understand that he needed to pay his rent 'on time' and was 90days overdue twice in 15 months); At one year from the original signing of paperwork - he didn't have the money to close (had to extend another year). - he got behind in rent twice that year.

I actually inherited this case as a manager when the agent left the business... it should never have been written in the first place is all I will say.   BTW - he got foreclosed on seven months after purchase.

Clean up your credit first - there will be house at the end of this year and into 2009 if not 2010...

Will I do another one - yes - but I will have an assumption package to start (agent never ordered one - so no way of knowing how much the buyer had to pay) or a payoff on the house and require verification from the buyer as to assets - and a hefty deposit (held in escrow) - this would be 'my best advice' to my client.

[sonogirl]

Thanks for the advice ,but I don't want to purchase the condo I am renting now I want a different place in the same community. I have never been late on rent and I have been here for over 2 years. I am just so tired of paying rent and having it pay someone else's mortgage.My rent now is $1400 that covers the owners mortgage and then some. Do you really advise against it? My boys and I are so sick of moving we really want to be in our own place to paint, decorate,etc. I appreciate the advice either way

[Anonymous]

No, I DO NOT advise against it (call a different agent and tell them you want to do a lease purchase not a rent w/ option).  It's a lot of work for the agent - some know how to do this and others don't (my agent that I inherited form didn't).  If you need an agent in your area them PM me your name location and contact info - I'll go thru my network and  find you one.