Short Sale, 1Bed, 1Ba Condo in Oakland (Caballo Hills), $155k

Property Address:

605 Canyon Oaks Drive, Unit H, Oakland CA, 94605

Stylish & Contemporary 1Bed, 1 Bath with granite counters, stainless steel range, washer dryer in unit, and hardwood floors.

Gated community with pool, racquet ball, tennis, spa, gym, clubhouse and much more.

• Short Sale Approved for $155k.
• HOA dues are $254/month and are ALL paid up to date.
• 11 units in building and 90% owner occupied.
• It is now vacant and I will be putting a lockbox up soon.
• Closing is August 20th.
• Cash Buyers Welcome.

http://www.redfin.com/CA/Oakland/605-Canyon-Oaks-Dr-94605/unit-H/home/12116874

For more details contact:  Adela@MadisonHunter.com

 

 

Lease Option Agreements (Rent to Own)

The Big Tease…

Historically low interest rates mean absolutely nothing if lending standards are tight, even for those with good credit.  Here’s an article from MSNBC.com that I read recently.  Frustrating…

The Big Squeeze…

Homeowners who are underwater with their mortgages or who just simply haven’t had any appreciation since purchasing their homes can’t even afford to pay the sales commissions (typically 6% of the sale price) to sell their property without taking a loss.  Those who have lost their jobs and cannot pay their mortgages face foreclosure or must short sale their property…both of which are damaging to their credit.  Frustrating…

The Big Relief…

In tight credit situations like this, creative financing methods become more attractive.  One method of interest may be the Rent-to-Own or Lease Option agreements.  The essence of this strategy is that the seller rents/leases the property to potential buyer for a mutually agreeable amount of time.  The seller grants the option to the buyer to buy the property at a set price within that time.  The buyer has the “option” to buy or decline, resulting in the loss of rent paid.   This could be a win-win situation for both the buyers and sellers.  SFgate.com did a nice article on this recently.  I’ve highlighted the pros and cons below:

Sellers:

• Receive rental income to help stave off foreclosure
• Prevent damaging credit

Buyers:

• For buyers with bruised credit, this gives them time to build equity and improve their credit to possibly qualify for a traditional mortgage
• Can buy with no downpayment or bad credit.
• Part of the rent goes towards the purchase of the property.
• Can elect to not exercise the option if the property value goes down with the only risk being the rent paid. Renegotiation of the purchase price is possible in this case.