My Home is Over-Leveraged
ACTS: Assigning Contracts and Terms System
Q: What is ACTS?
A: We will lease option your home for the loan balance at the time it’s purchased and pay you rent equal to your payment and accept responsibility for all repairs after the first 30 days. We will then find and screen a tenant buyer who will make a financial commitment to lease the home with the option to buy and assign our agreement to them after you approve them. We buy houses in pre foreclosures and over leveraged.
Q: What does this cost me?
A: Nothing! You’ll have no expenses for selling your house until the buyer is ready to get financing and then you may pay some reasonable closing costs. Sometimes the buyer pays all costs.
Q: How long must I lease?
A: The minimum term if you’re over leveraged is enough years to give the market time to increase the value and for the debt to decrease to the point the home is no longer over leveraged. This allows the buyer to get a loan to cover the debt without you contributing cash to pay it down. If you owe at or about today’s market value we may shorten the term.
Q: When do I start collecting rent?
A: One month after we find a tenant buyer you approve and they accept possession of the house. We expect it to take no longer than 30 days after you are ready for us to show the house but it may take longer or happen sooner depending on several circumstances that vary with each house.
Q: What if the tenant tears up my house?
A: Our tenants are of a buyer mindset and will have a financial stake in the agreement. Plus they will be responsible for repairs. In our experience it’s rare for them to tear up a house and lose their option and deposit but it could happen and that is a risk you must take if you elect this program. However if it were to happen you may call us and it’s likely we can lease it again in its as is condition.
Q: What paperwork is involved?
A: You will execute a lease purchase agreement when you’re ready and when we find and you approve a tenant buyer. Then, an attorney will prepare an assignment and ask you to sign a few disclosure documents at that time.
Q: What if the tenant buyer never closes?
A: Actually that may be the best thing that could happen for you. Every month a tenant pays you rent to cover your payment, it reduces your debt and eventually pays it off. If they don’t buy you’re building equity.
Q: Do I get any money if they do buy?
A: No! Not if you’re over leveraged now. The only reason a buyer would agree to lease option an over leveraged house is because they get the benefit of the debt reduction and in time will build enough equity to get financing. If this opportunity is not available the home would be unmarketable. However, if you have equity now, it’s likely you will get cash at the time of sale.
Q: Will I be paying for repairs?
A: Only during the first 30 days and if you can’t fix any- thing that needs fixed before we offer the house we can disclose to the buyer and may get them to accept as is. Your lease will contain a provision for you to fix anything not disclosed but only for 30 days.
Q: So what’s my responsibility
A: Just like when a home is for sale by owner: Get the house ready to show, approve our tenant buyer, collect rent and make the payment (we can have an escrow company do this), show the house by appointment if you reside in it while we market.
Q: What if you don’t find a buyer?
A: If we don’t find a buyer you approve within 60 days you may cancel our agreement or allow us to continue looking.
Q: What if my house isn’t over leveraged?
A: We buy houses in any condition: We can still lease option it from you at a fair price and will either assign our contract or may choose to remain in the middle until it’s cashed out. We may also buy the house now and take over the debt or simply pay cash. Once we know the facts we can instantly tell you what we can do and let you decide your best choice.
What You Do Next…
Go to http://fchomesbroward.com/ and complete the Property Information form or simply call 786-505-8884 and we’ll complete it over the phone. It’ll only take a few minutes.
We’ll discuss the facts by phone and tell you what we can and can’t do and if we both agree to move forward we’ll visit the home, answer questions and leave you with the agreement.
Once the agreement is executed and you tell us when you’re ready we’ll begin showing to our current buyers list or find new ones if necessary.
Review our buyer and if you approve we’ll set up the closing for the tenant buyer to attend. You do not need to be present
That’s It!! It’s that simple!
Ok, What do I do next ? 786 505 8884 or http://www.fchousebuyers.com/
We buy houses in pre foreclosures and over leveraged.