This entry was posted on Saturday, August 4th, 2007 at 11:40 am and is filed under Financing, Real Estate Scams. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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August 4, 2007
Having poor credit and trying to purchase a home is increasingly becoming nearly impossible as more and more lenders choose to avoid offering mortgages to high risk clients. Sadly mortgage brokers still encourage clients to attempt to get these loans, even when there are few to no loans that can actually be given. This provides many with a false hope that they may be able to some day qualify for a home loan, or they simply believe that within a years time they will be able to resolve their credit issues and have perfect credit. Something much easier said than actually done.
Generally, people who find themselves opting for a lease to own purchase are not very wealthy, educated, or are in desperate circumstances. People in these categories are in a terrible bargaining position, never use attorneys to look over contracts, and will likely not afford to, or choose to actually fight when the landlord decides to not sell the property to them.
Lease options are like no-credit here car lots. The goal isn’t really to sell you the home or car. The goal is to get you to hand over a lot of money, either as a down payment, or as lease payments with the idea that you’re an “owner”, and then get the house or car back on a technicality, so it can be “sold” again.
Even if the landlord isn’t acting on evil intentions, the situation of poor credit will probably not change in a years time, thus ensuring that the home is never purchased. Don’t think that Sub-Prime mortgages are going to be any easier to get in a year’s time.
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