Lease Purchase

[NaturalLove]

We have to move to another state due to a job promotion. My credit has gone to hell due to circumstances out of my control. I am currently working on credit repair, but it'll be a while before my credit score is good enough to get a good rate to buy a home. I just want to keep my options open in the meanwhile.

 

I've seen some homes that interest me and they're offering a lease/purchase. I'm not too familiar with this. Let me see if I have this right. You lease purchase a $250,000, you pay an agreed upon amount per month and part of that would go towards your down payment. If for some reason you decide not to buy at the end of the term, you would forfeit that "escrowed" amount. Well, what if housing prices take a dive and that house is now only worth $200,000, you would still have to pay $250,000 for it? If that's the case, it's probably best to negotiate the price up front, as it would be harder to do at the end of the contract since you agreed on those terms, right? Please tell me if I have this right.

 

What are the pros/cons of doing this type of transaction? Have any of you had success with this? I am moving to the metro Atlanta area and I already know things are going to get worse before they get better.

 

Thanks for your help in advance.