• Getting A Mortgage With Bad Credit, Forget It Try Lease Options

    Buying a property or getting a mortgage with bad credit can be a nightmare and could stop your property investment dreams in an instant. There is however a REAL alternative.. A property lease option or instalment could be the answer

    Reena MalraI recently read this post by someone who had found their dream home but as they previously declared themselves bankrupt they were concerned that they wouldn’t be able to get approval for a mortgage due to their poor credit score. Read the post here..

    If you are in this situation, you need time to manage your finances to show to your lender that that was a blip in the past and now your are on the straight and narrow path. But because it is so unpredictable when lenders are going to change their criteria and loan anything, you could be waiting forever, its better to look for alternative ways to get onto the property ladder whilst you are sorting your mess out.

    One way I help my clients in this in this situation is through lease option and/or an instalment contract.

    In this case the potential buyer could actually speak to the owner of the dream home to see if they would allow the buyer to lease the property for a few years with a view to buy in the future.

    To secure this opportunity, the buyer will typically pay a small deposit, agree the monthly instalment amounts, a purchase price and a term within which they would buy the property.

    This will give the buyer time to iron out any issues that may prevent them from getting a mortgage. In the meantime the buyer can enjoy living in their dream home knowing that they are going to own it one day and there is light at the end of the tunnel following their bankruptcy.

    For piece of mind, solicitors can put together paperwork at this stage to protect all parties involved. This creates a win-win as the seller is able to sell his house for a good price, which he may not be able to do in the current economic climate.

    Instalment Contract Case Study

    In this 2 part case study, I explain how my client and Mentee secured their dream home and enabled them to make £3000 per month as well. If you want to become one of my students call me to discuss what you need to do to make a massive difference to your life and your bank balance 0203 397 7030 

    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

    View all posts by Reena Malra

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