The Best Lease Options For Saving Your Home
If you’re in the face of possibly losing your home, don’t worry, you’re not alone. There are thousands of homeowners that find themselves in the same predicament each and every year. It’s as simple as people as people not having the means to pay for their mortgage.
If this sounds like you, you may be asking yourself,
“How can I save my home?”
You don’t want to move or sell your home and take that loss, so your next best bet is to check out one of the many lease options available. Lease options can help to keep you safe from foreclosing while making you money all at the same time. Let’s look at some of the most popular lease options.
A straight lease is the simplest and most popular of the available leasing options. A straight lease is when the homeowner rents out their property to a different tenant and the tenant will pay monthly like a regular renter. A straight lease is great if you’re looking for some extra monthly income.
Straight Lease Option
A straight lease option offer you the chance to make more income when compared to your standard straight lease. The homeowner will rent the property per usual, though the renters will pay a 2-5% non-refundable fee that gives them the option to purchase that property at a later date. The price is negotiated and decided on ahead of time. Essentially, the renters are renting to own the property.
A straight lease option will typically last anywhere from 3-5 years until the buying window is closed. Do note that if the home value does not rise during the renter’s time there, they can walk away from the contract without having to pay a dime.
Sandwich Lease Option
The Sandwich Lease Option is the most complicated of the bunch and allows you to be either the lessor or lessee. You essentially seek out a property that you can lease option from the homeowner and then find a person or party to rent it with a lease option.
The idea is that you are making an investment on a property and seeing returns without having to worry about the liability of actually owning that property.
Should You Use a Lease Option?
Lease options are great for a number of reasons. They give homeowners the opportunity to get out of debt and avoid foreclosure and provide the possibility of value increase while renters are there. Unfortunately, nothing great comes without the downsides.
Seeing a profit through a lease option can take a long time. It can also be difficult to find the right lease option buyer. Obviously, your specific situation is very different from the next guy, meaning you should speak to a professional when deciding whether or not a lease option would be in your best interest.
Have you ever used a lease option to save your home? What was your experience like? Let us know in the comments!