Closing Your First Lease Purchase Deal.

I have found a couple of properties that the owners are willing to do a Lease with Option to Purchase. This will be my first deal and I want everything to be done right. Can someone please tell me what forms I need to take with me to meet the seller, should I have the contract notarized and record the option at the court house, and exactly how do you do a closing? This very green newbie really needs help. <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by cjmacks on Date 06/25/2003 ]

Comments(1)

  • harvest25th June, 2003

    CJ,

    I mainly do nothing but Lease Options and Subject 2 deals here in North Carolina. Here is what you will need when you go meet with the seller:
    1. Lease Option Form
    2. Performance Mortgage

    I usually will try to get the seller to sign a performance mortgage because when it comes time to close, I would just assign my rights over to the tenant/buyer. My assignment fee would be the difference that I offered my t/b vs. what i owe the seller. Now the performance mortgage will cloud their title. It stops the seller from refinancing etc. without your knowlegde.

    Hope this helps.

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