Running head: MORTGAGE CONTRACTS/ LEASE-OPTION AGREEMENTS
MORTGAGE CONTRACTS/ LEASE-OPTION AGREEMENTS
This paper seeks to discuss how most Americans are being disadvantaged by engaging in
mortgage contracts which are more disadvantaged over lease-option agreements which are more
beneficial and have a financial advantage and end up losing their homes. Mortgage contracts
tend to have more financial disadvantages as compared to lease-options agreements which got
less financial restrictions and complications. Bar-Gill (2008) holds that a mortgage contract is a
pledge made by the borrower that they are willing to let go of their property if they are unable to
repay the loan. If the loan is not met, it acts as a lien to the property. On the other hand, leaseoption agreement formally known as lease with the option to purchase is a contract useful in
commercial and residential real estate. The property owner and the tenant gets to an agreement
that at the end of a specified duration of renting for that given property, the tenant will have a
choice of being able to purchase the property.
A major problem facing most Americans is the unaffordability of mortgages to middle
and low-income earners....