OfflineHi, Is there a different contract for each of these two titles or are they the same? What is the difference if any? I am looking at a purchase but do not want to finance. Seller is willing to do a lease purchase or option. Would this be considered a sale as far as the finance company that now holds the mortgage is concerned? Their contract says that the mortgage company can call in the loan as due and payable if the property is sold. Where do I go from here? Thanks for helping me out.
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In a lease purchase the owner agrees to lease the property for a set length of time, then sell the property to the leasee for a predetermined sale price. In a lease option, the leasee signs a lease to rent the property and has an option to buy the property at a later date. In either case the property is not being sold until a later date, and the title stays with the original owner until the sale happens. The mortgage holder cannot call the mortgage due until that sale happens.
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Thank you so much for your prompt reply. Your answer is really helpful. I know I will have more questions later. I am anxious to get rolling in this business. Slow but sure, I will get there. lol
Sharon