How to avoid a selling pitfall, when your house isn't selling!
Many sellers are discouraged in this market. The key to selling is marketing your home correctly along with pricing it right and having it ready to show. The more market exposure the better opportunity you have of finding a buyer. Here is something that many sellers forget about. If your home has not sold and it has been months, you think of or someone recommends a lease / option to purchase. In some states this is a death blow to the seller. If your lease option purchase agreement is written wrong it is considered a sale! It is not the commission you will owe that is a problem, It is not waiting and hoping for the conversion date. It is the "due-on-sale" clause in your mortgage contract. Thats right! You could immediately be liable to pay off your entire mortgage to the lender! Now isn't that a kick in the pants after months on the market with no offers and no one in site to buy your home.
Before you consider this option consult an attorney to make sure your contact is correct and you are not triggering a "due-on-sale" clause in your mortgage contract. Many real estate agents, sellers as well as buyers are starting to use this selling option again with disastrous results. Do not be caught in a trap that could cost you and your family thousands of dollars. Investors use this optional finance method for nothing down type programs. I will give you some insight into that in a later blog. But beware of a buyer with a no money down option that states they will take over your mortgage payment and save your credit, "you just move out and sign here". They may never make a payment and leave you will a foreclosure! Remember, "if it is to good to be true it probably is." and the old saying hasn't lost any of it's luster. Right now more dishonest people are swooping in to take advantage of people at there lowest moments. We have some great Realtors in the business that will protect your interests. We also have some wolf's in sheep's clothing.
Your comments are welcome. Others may have the same question you have.
Sincerely
Gary White