“The recession is expected to bottom out later this year,” according to the Organization for Economic Cooperation and Development. However they suggest “recovery will be weak” and that consumer wealth is much smaller as a result of the “lengthy deterioration in the US housing market.” Additionally financial markets remain weak with mortgage credit in tight supply.”

However there may be ways to consider a home purchase if you find yourself in a credit crunch due to a lengthy divorce, recent bankruptcy or have other credit issues. If, of course, you have regular income and a steady job. A few of the ways are briefly described in the following paragraphs. Please keep in mind I am a Realtor® and I am not qualified to give legal advice. I am just sharing some of the ways my clients have approached the home buying process as times have gotten tough. Contact your local accountant or legal professional to best understand these processes.

Lease Option
This is a lease with an option to purchase at a pre-determined price. The tenant may pay an amount over and above a normal rent to be applied to the down payment. Additionally a separate option fee may be required up front by the seller. This process can be helpful if one finds their credit issues can be resolved within a year or two, which means they should be able to go forward with a regular purchase at that time.

Land Contract
This is an installment agreement that is drawn up between the buyer and the seller. The buyer takes possession and makes regular installment payments. The title of the home remains with the seller until final payment is made. The buyer can decide to pay the seller off after paying a series of installments by going with another lending company, or paying off the loan with a balloon payment, as long as this is stated in the installment agreement and agreed upon by buyer and seller.

Note and Deed of Trust
Initially a note for an agreed upon purchase price is written between the buyer and the seller. The Deed of Trust is drawn up between the Trustor, the borrower, and the Trustee, the party that holds the legal title, and the Beneficiary, the lender. The Deed of Trust identifies the following:

- Original loan amount
- Legal description of the property
- The parties involved
- Inception and maturity date of loan
- Provisions of the loan and requirements
- Ownership transfers to the buyer

Other provisions such as late fees, legal procedures, acceleration clauses, etc., are included in this document. The provisions vary from state to state, so please contact your attorney.

I have briefly explained three ways to purchase a home in today’s market that may work based on your individual circumstances. There is another way, called a Wrap Mortgage, which you may have heard about and I will cover with my next Blog entry. One great right of the American people is to pursue the “American Dream” of home ownership, and if you have taken one more step toward that dream in reading this article, then I am happy for you. Go for it! Grace Hughes, Your Personal Realtor®….

The web site where you can find that Dream of a Home and any home listed with the official Muti-Listing Service is www.FindaPlaceWithStyleNgrace.com.   If you have any additional questions, my contact information is as follows: gracehughesjax@gmail.com or 904-233-1341.