Getting to sold in challenging times can be difficult.  Homeowners who have to sell in today’s market can face a number of obstacles, but Realtors® are rising to the challenge with innovative approaches that help sellers get to sold.

Selling your home in today's market may mean looking at alternative financing options.

Securing financing can hold many home buyers back.  An attractive alternative for these buyers is seller financing – an arrangement in which sellers may be willing to finance all or part of the purchase – and a Realtor® can help negotiate these transactions.

Realtors® can also help buyers and sellers develop rent- to-own agreements, in which sellers allow a buyer to lease the property with an option to buy, applying a portion of the rent toward a future down payment. 

These arrangements are typically called ‘Lease Options’ in Michigan.  The buyer usually puts down a down payment, and signs a 2 or 3 year lease in which at the expiration of the lease, the buyer has the option to purchase the home through financing, or walk away and the seller generally keeps the option payment. 

The agreement can be written in various ways, but is most often done on a home that has a mortgage, because they are leasing the property rather than creating a seller financed mortgage or mortgage-type sale such as a land contract, which could violate the terms of the existing mortgage.

Lease options are sometimes a good choice.

The land contract is a legal way to sell a property in Michigan, but it usually requires that there are no other mortgages or liens on the property for it to be a viable option for the seller.  The reason for this is if they have a mortgage, it quite frequently has a ‘due on sale’ or ‘acceleration’ clause which requires the mortgage be paid in full before transfer of ownership. 

 This makes a land contract not possible, as it is legally selling the property to the buyer with seller financing, much like a private held mortgage.  Thus sellers might choose to do a lease option instead, as an alternative. 

To discuss alternative solutions to selling your home in Southwest Michigan in more detail, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.

Getitng to sold in this market requires working with an experienced Realtor.

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