You have already moved to a new house and still trying to sell the old one. It's been listed on the market for 5 months with some decent activity, but serious interest can't get financed. Two months of double mortgage payments has made you look at your options, so you get your home evaluated for Lease Purchase Protection.
Your Numbers: Home is in good condition valued a little over $200,00.00, with an Asking Price of $194,900.00. You have a mortgage with a payoff of $157,583.00 and a monthly payment with escrow of $1,194.68.
Coverage: Your home is approved for a Coverage Payment of $1,210.00, so when the Buyer is contracted you'll have a positive cash flow over your mortgage payment of $15.32 every month.
Time: Within 30 days your Agent has a Buyer that would be perfect for a Lease Purchase, they are reviewed and Protection approved. Now we can work with your Agent to put together the contracts, schedule inspections and setup the Possession Date.
Benefits: It's SOLD! Everything is handled until closing and you can breathe again. Every month we'll send the Coverage Payment of $1,210.00 directly to your mortgage company and work with the Buyer to get closer and closer to closing.
Savings: Even though it could be longer lets say a standard sell would've taken 11 months in total (that's 5 more after the L.P.) and with negotiating you sold for $185,000.00. Not including any utility expenses your monthly payment savings is $5,973.40 and closing savings is $9,306.00 when selling it in the program at asking price. Together your total savings with Protection is $15,279.40 more than the standard sell, so you're almost $10,000 on top after our $5,995.00 closing fee. This is why we say it's virtually free for Protection.
Note: In this situation if you would have used Lease Purchase Protection 1 month before moving out you could have saved 3 additional mortgage payments and a grand total of $18,863.44 over the standard sell. Put the market to work for you!
