Charlie Ragonesi 706- 579-1098

The lease purchase has become something we are dealing with more and more. Causes for this are numerous. But in many cases a buyer has come out of a short sale, or even a foreclosure, and needs some time to build back up their credit score. They find a home they want, like , and can afford so they offer a lease purchase contract.

The seller on the other hand may be in a sluggish market. The seller may have taken a move to preserve a job that they may not be able to get where they are. They now have a house payment, and a rent payment in a new location. So a lease purchase can eliminate a cash flow issue and now becomes an option the seller might not have normally considered.

A Realtor is just as valuable in this type of transaction for a number of reasons. But I am going to list a really common mistake both people acting in good faith can make.

Seller Jones has entered into a lease purchase agreement with Buyer Smith. Buyer Smith has come to know and trsut Seller Jones during the face to face negotiation as neither has an agent. Buyer Smith agrees to give Seller Jones a $5,000 deposit on the house as down payment and leases for 15 months. Everything is fine and Buyer Smith loves the house. Seller Jones has the $5,000 in his bank ready to go. Buyer Smith is going to use an FHA option as 100 percent financing options are not available in his area and he is not a veteran. The house price agreed on is 250,000. Buyer Smith needs $8750, 3.5 % plus closing costs. He goes to Seller Jones for the 5k.

Here is where the problems start. FHA considers that 5k a gift and since Jones and Smith are not related will not allow it. Further more doing conventional doesn't work either as the same problem about a 5K gift arises. Now Jones can either come down on the price, for FHA. or use the 5 k in closing costs only in a conventional setting. Either way both acted in good faith and Smith is stuck.He does not have enough cash to close and the deal falls through.

Is there a correct way to do this? Yes. The money needs to be in an Escrow account clearly earmarked for down payment. If Smith or Jones had used a Realtor this problem would have been avoided and the deal would have gone through.

This is just one example of why even with Lease Purchases you should use a Realtor

OK so let me pose the question. Can you be for fiscal responsibility AND for extension of the real estate tax credit ? Here is the debate. Many are looking at Government spending and saying, "wow we are out of control." If you buy that argument or are even concerned then how can you be for an extension of the tax credit?

Yes I know ther tax credit has helped. We have benefited from it here. But in almost every program somebody benefits. When a program is cut somebody loses. So are you saying, "cut , but not in my back yard?"

I pose this question because sometimes we are so quick to raise our voices against government spending EXCEPT when it effects us. So now that I have posed the question I think I should get off the fence and give my opinion.

I think we should adopt the Senator from Georgia, Johnny Isaksons plan. He calls for 15,000 home buying credit for a primary residence. No other strings. This is a plan, with a reduced number, he was part of during the S&L problem a while back and it worked. I think Congress should say it will sunset after one year period. As painful as it may be we need a control on spending. Even if that spending some times works for us.

Today was the Jasper Georgia Marble Festival. The Apple festival in Ellijay Georgia is going on now too. Fall is a time for festivals in the mountains. We are celebrating great weather , harvests and getting ready for winter. Jasper supplies much of the countries marble and the festival is a lot of fun.

I was having an open house. But before you feel too sorry for me I was right along the parade route .Here are some pictures .

There are folks out waking and floats pulled by pick up trucks

Of course all the local fire departments had trucks in the parade . The kids love to hear the horns.

Of course there were local farmers and floats as well in the Parade. The whole event had a quality about it that said small town. If you saw the movie Doc Hollywood with Michael J Fox you know what I mean.Our mountain communities are great places to visit live and raise families.

My open house got a lot of foot traffic so all in all as open houses go it was good.

Recently the Atlanta Journal Constitution called Big Canoe a place where millionaires lived. Can somebody please tell me who lost my check? Big Canoe is a diverse community. Yes there are million dollar homes in here. There are also as many homes that are wonderful that are under 200,000.

Big Canoe is a unique mountain community. To find out more visit us on line at www.allmountainrealty.com or give us a shout. We have a great place for you to be if you are looking for mountain property.