Steven
bought a 3 bedroom/1 bathroom property for
himself on Duncan. When he had purchased the
house he didn't have a good credit rating to
obtain financing by bank. The seller was
flexible enough to sell him the house on a
land contract (owner financed).
Steven was to make payments to the owner for
7 years with a large balloon payment for the
balance of the mortgage note at the end of 7
years.
This had sounded like an ideal setup at the
time of purchase, as Steven figured that as
long as the house appreciated and his credit
score increased overtime, he would be able
to qualify to refinance and satisfy the
original mortgage note owed to the original
seller.
Seven years passed and the Steve's credit
remained the same due to his continued bad
spending habits. And even worse, the house
merely appreciated an average of 1.5% per
year. Such a combination of a low credit
score and minimal equity, did not get him
approved to refinance his house.
With the balloon payment deadline looming
and a bust for his original plan, he
turned to Schwaps.
Schwaps was able to buy the house from
Steven, thus satisfying his balloon payment
due to the original seller. The house was
then leased to Steve with the option to buy
after two years. The option price was agreed
to be 80% of the then appraised value. And
to assist Steve with the purchase price were
$100 per month rent credits which would be
used towards the purchase price if the
option was exercised.
* The
story above is just one example of the many
ways Schwaps may serve your Real Estate
Needs |