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Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Since the asset usually has value at the end of the lease, this can be a bonus to the lessor that makes often low ball lease payments more than worthwhile. The entire 2nd mortgage amount will be forgiven if the property is not sold, refinanced or conveyed within this time period. Most of these people either have low-cost or no mortgages, so they're making profit and the opportunity cost is pretty much hidden, OR they're betting on prices to go up, so that the final return on sale is sufficient. DURATION OF AGREEMENTThis agreement shall be valid for a period of one 1 year from date hereof.
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