Lease Options
Do I need good credit?
No you do not. You may think you have bad credit when you do not. You do not even need to have a credit score at all. These things do not mean you cannot afford a house payment.
Do you run a credit check on me?
We DO NOT run a credit check we only do a background check. A finance company may need to. Part of the process for this program is taking you to a trusted lender who will need to see some information on you to be able to tell you how long it will take to qualify on your own. You will be given some guide lines to follow to enable you to qualify in 2-3 years. You an email or fax 2 forms for you to fill out if you are serious about home ownership. They are an Authorization To Release Information and a Lease Application. I will need these back for processing before I can continue to provide you with a home If we have not already talked, feel free to call me.
Am I obligated to purchase the home if I cannot qualify in 2-3 years?
No, this agreement is an option. You can choose the option not to buy however, you will loose the option money provided when you sign.
How much cash do I need?
You will need you will need approximately 5% of the agreed upon purchase price. The amount you give for the option is directly related to your monthly payment.
What happens to my option money if I choose not to buy?
You will lose the option money. This is clearly communicated to you in writing before you sign anything. This is why our program includes taking you to a trusted lender to see if you are able to qualify in a period of time you are comfortable with.
Can I pick a home or do I have to choose from what you have?
You can find a home that you like in the area you desire. Keep in mind your benefits in how much you pay are directly related to my ability to negotiate a great deal. Please feel free to locate a home and give me a call. If you take this route the next step will be meeting with you for some basic information at no cost or obligation to you.
What if I cannot qualify after 2-3 years?
There are 2 parts to this question:
1. The finance company will know this at the beginning and you will not be eligible for our program. The only exception to this may be a longer Lease Option period which will depend on the extended period of time needed for you to qualify.
2. If the finance co says you will be able to qualify, you will be given some guide lines to follow to help you look good for qualifying in the time period needed. Failure to follow these guide lines could prevent you from obtaining financing. At this time we can see how much longer it will take to qualify you. There is a small fee to extend the option and this is credited to you at the time of property purchase along with the option money. If after any time period agreed upon, you do not exercise the option to purchase the property, you will loose the option money.
Can I extend my option?
You may extend your option for 1 year for a small fee of $1000.00, (one thousand). This will be credited to your purchase after the lease option extension period. Your yearly lease will also have to be renewed at this time.
What advantage is this for me vs waiting 2-3 years and qualifying on my own?
There are 4 parts to this question:
Some of your payment can be credited toward the equity of the home depending on how much option you pay.
The price of the home is predetermined at the beginning of the transaction.
Your option money is not wasted. That option amount is credited back toward the purchase price.
My program leaves equity in the home. This could be as little as 1% or as much as 5% possibly more depending on appreciation growth rates. Although an amount of equity is not given, you are given, in writing, a promise of equity when you buy.
Your site says coastal properties, do I have to stay in the area?
That depends on where you want to go.You would have to contact us and we would check the area and let you know.
What type of insurance do I need?
You will need renters insurance. I will provide a home warranty package that you can assume, if you like, when you opt to purchase.
How do I find out more?
Please call 805-458-2449, 7am to 7pm for a free no obligation consultation, ASK FOR FRED.
Foreclosures
What can I do if my house won't sell and I cannot afford the payments any longer?
There are 2 answers to this question.
1. If your situation is short term due to an unexpected problem, your creditor may be able to assist you by putting the payments you cannot make on the tail end of your loan. This process will likely cost a lttle in extra finance fees but is certainly better than losing your home.
2.We offer a solution that allows time to sell the property and keeps you from losing most of your assets. Call us today for a free no obligation consultation to see if you qualify for this program. 805-458-2449, ASK FOR FRED.
Can I get things back to normal after I have been notified of my default?
Yes, The law provides a timeline for you to bring the payments current. You have the right to re-instate your loan until 5 days before the auction date of your home. After that time your right to redeem has expired. Keep in mind this does not exclude you from still being able to redeem just your right to it has expired. Should you decide to try to redeem after the expiration you will most likely need cash to bring current and good documentation. You will need this to show you will be able to continue payments as before without going into default again. The earlier you work with the lender to bring your default current the better off you will be. You will most likely still owe delinquincy fes and back payments.
Will my credit be affected if I miss payments but bring them current?
It could be. It is up to your creditor how and when they report your delinquent activity.
Does filing for bankruptcy protect me?
It may but that depends on what kind of foreclosure process the lender takes and if your original loan is still in place.
There are 2 types of foreclosure proceedings a lien holder can use. These are Non Judicial and Judicial.
The Non Judicial is the most common. The lien holder filles a legal document known as a Notice Of Default. They then wait for the lawful time period and sieze the home for auction. The money they receive from the auction is their settlement. It is generally much less than the homes value and they cannot go after you for the difference in what you owed and what they received.
The Judicial proceedings are most generally used when a principal balance or a balloon payment is due. When a lien holder elects to go with the longer Judicial preceedings, they also have the right to go after you for the difference between what they received for the home and what you owed.
Will I recieve anything if my home is taken through foreclosure?
Not likely, the bank was holding your home as collateral for the money you received to purchase the home. Banks do not really want the property because it shows as a non performing asset on their books. They will most likely sell the home for less than what you owed on the property so they can put the money to work again.
Will I ever be able to qualify again after having a foreclosure?
Yes but it takes time. A foreclosure is one of the worst things things to have on a credit rating. We, and possibly others, provide a way for people in this situation to get into homeownership again without clearing their record. It may be it wasn't a payment but the amount of it they could not afford.
Is there anything concerning foreclosures that I need to be cautious about?
Yes, there have been, and probably still are, those out there who will promise you many things but are only after getting your home. Make sure you completely understand all that is said. If they promise anything or are providing a service, get it all in writing with a date and signature.
Is there anyone I can trust?
Concerning foreclosures at this point I know of no one but ourselves. Some solutions offered are bankruptcy in disguise. Under certain conditions this will not protect you from your mortgage obligations. For debt relief see the help yourself page. Please visit the testimonial page and the page about us to learn more about my history concerning honesty and integrity. 805-458-2449. ASK FOR FRED.