For the past 6 months I have been on a perfect house search (and for the owner to finance me). Things fell through w/2 of my favorite houses (leins and water damage etc). Tonight I found a guy that buys houses in foreclosures and resells them on a 24-36 month lease, although he calls it Rent-to-own. My max. budget is 30k. My father will be making the down payment and I am to make the monthly payments til it's paid off. Since I've started college I take out loans to pay my bills and figure why pay rent when the same amount could be going into a house.
What should I have in the contract to protect me and him? After the inspection and appraisal of course.
2006-11-20 15:54:47 · 8 answers · asked by PlasticTrees 2 in Business & Finance ➔ Other - Business & Finance
I also have 2 roommates that pay $400 month where we live now. They will be paying the same when things are closed on the house.
2006-11-20 15:56:16 · update #1
I failed to mention that I would have to have my lawyer look at it, as well as both of my parents... an uncle that was in this business and of course my roommates. I really can't afford to get screwed w/this.
2006-11-20 16:12:45 · update #2
It depends on the deal, the seller may offer rent to own because he is having trouble selling it outright, so he rents it so it does not stand empty giving the renter the time to get financing. Rent to own is really rent with an option to buy. So for people to rag on this is really kind of stupid, if you rent with an option the extra money you pay (if any) is just the price of the option. If it is a good deal do it. The biggest problem would be that the property has no encumberances so if you do execute the option (buy) you get a clean title. If you rent for the term and YOU cannot get financing by then that it your fault, not the sellers.
2006-11-20 16:44:16 · answer #1 · answered by victorschool1 5 · 0⤊ 0⤋
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2016-07-19 20:34:03 · answer #2 · answered by Laurence 3 · 0⤊ 0⤋
I'd run as fast as I could AWAY from this deal. If your seller is "a guy that buys houses in foreclosures and resells them on a 24-36 month lease, although he calls it Rent-to-own" then you should not be writing a contract; he should already have a boilerplate one ready to customize for you. So it sounds like he is misrepresenting how much experience he has in this concept. Since you don't really know how rent-to-own works and the seller doesn't know either, it's a bad combination. In general rent-to-own is not very favorable for the buyer; add in the question about the seller's experience or honesty and that's a really bad situation waiting to happen.
2006-11-20 16:06:18 · answer #3 · answered by dcgirl 7 · 0⤊ 0⤋
I would say buyer beware. Anyone that will wants you to "lease to own" really wants you to rent from them. I had a friend get into one of those deals and was suppose to be able to "get the loan transferred into her name" after 2 yrs of paying payments, and needless to say, that didn't happen. Usually in the small print there is a bunch of stuff that will make you the renter, and they do not have to give you a loan after the 2 yrs. I am not sure what state you live in, but I would definitely call your local Better Business Bureau and or Attny General to see what your state/city laws are about this. If you decided to do it, I would suggest having a lawyer read the documents to translate it for you. It's a lot of money to trust someone else to help you. Just my 2 cents.
2006-11-20 16:08:39 · answer #4 · answered by blondtoad 1 · 0⤊ 0⤋
Most of the time rent to own is a scam that landlords play with "Buyers" that can't get financing to buy a house,
after paying higher than market rent for two or three years 90% STILL can't qualify for a mortgage, and the landlord gets to keep all the extra cash you paid for the "to own" part,
you should work with a mortgage banker or broker to find out what you have to do to get qualified for a 'real' mortgage, good luck
2006-11-20 16:03:11 · answer #5 · answered by Ron H 2 · 1⤊ 0⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?kyqs
2016-07-12 13:08:53 · answer #6 · answered by ? 3 · 0⤊ 0⤋
you will have your place appraised lower back in case you think of it extremely is going to appraise bigger now. oftentimes a lender will waive the PMI requirement if the non-public loan is eighty% or much less of the abode value. yet another decision is to get a commercial own loan for the condo property as they use distinctive standards for lending on condo residences than a trouble-free abode own loan. stable success!
2016-11-25 22:09:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋
don't like rent to own.......................
2006-11-20 15:56:14 · answer #8 · answered by cork 7 · 0⤊ 0⤋