Looking down the barrel of a foreclosure,
if you are among one of the over 1.4 million homeowners facing this same issue,
there may be a creative technique to save your home. Save your home and salvage
your equity so that you can fight again. The last thing that you want to do as
far as properties for sale in Kenya is concerned is to give your home back to
the lender.
If your financial hardship has left you in
a position whereby you are not able to pay your mortgage payment, whatever the
reason may be, then you cannot afford to live in your home. Foreclosures are
growing dilemma for many homeowners in Kenya today; foreclosures are at an all-time
high. For example, Alan Greenspan made comments that the US may be heading for
a recession some few years ago.
Some lenders out there have not been
playing fair, and some even to the point of unethical practices. These
unethical practices are a primary reason that foreclosures are at an all-time
high and were not expecting it to slow down anytime soon according to most real
estate experts in Kenya and other parts of the world.
On the bright side of things, you may have
an option that may allow you to keep your home, even if the foreclosure process
is already under way. Something that has been around for many years, and you
may possibly utilize to save your home and equity. You may need to wait a year
or two in order to cash out the equity on the property, but it is better than
the alternative.
This option is referred to as a Lease
Purchase Agreement, find a tenant to lease your home from you, with an option
to purchase the home at the end to the agreed period of time; usually 12 to 24
months. You set a price for them to buy the house when the agreement is signed;
this will allow you to set the price so you can save the equity and by some
time to recover.
With a tenant that has the option to buy your home you may be
able to:
1) First and foremost is the avoidance of a
foreclosure
2) Since renters are paying less today due
to the high foreclosure rates, this may be a way to increase the monthly rent,
due in light of the purchase agreement
3) A one-time payment, up-front as a
non-refundable deposit, this is usually 1% - 3% of the sales price. The best
part of this is that even if they decide not to buy your home, you still keep
the money
4) Quickly locate a buyer for your
property, most times faster than trying to sell your home in the traditional
manner
5) Someone else will be paying the mortgage
payment, and potentially a few millions Kenyan shillings a month more
Lease Purchase Agreements usually work well
in any real estate market; these agreements referred to as a "lease
option" as well. This is a very valuable strategy to keep in mind,
especially during market that in a distress.
While there may be many other reasons to take
advantage of a lease option, they are defiantly an excellent way to avoid
foreclosure, and salvage your home from the bank. In a foreclosure, your credit
will be destroyed for years to come, and the additional financial repercussions
can take a tool on your personal life.
To get more informative hints and
available properties in Kenya kindly visit www.kenyan-real-estate.com
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