What kind of documents are needed for protection when you lease with option to buy or rent to own a house if you are the seller? Also I heard with the lease to own option part of what the renter pays goes toward the down payment when they purchase it? How does that work? Do you have to save that portion of the money back or do they just tell the loan company the asking price and the price thats already been paid? I'm trying to get clear in my mind just how these to options operate.....Thanks in advance for any answers you may have!
2006-11-21 04:19:44 · 2 answers · asked by Marsha 1 in Business & Finance ➔ Renting & Real Estate
Both of these options operate very similarly.
Someone with bad credit and unstable job history moves in to your house. You are still responsible for the mortgage. At some point, they cannot make the payments - that's why they have bad credit now. You can't afford to make payments on the house you live in and the house with your bad credit tenants at the same time. You also don't have the money or time to evict them. The lender forecloses on YOU, not the people living there.
i track the history of HUD, VA and bank foreclosures in San Antonio, and lots of them happened just this way.
Don't do rent to own, lease to own, lease purchase, lease option, contract for deed, etc. Either sell to someone who can get a new loan or rent to someone with good credit.
2006-11-21 05:07:37 · answer #1 · answered by teran_realtor 7 · 0⤊ 0⤋
Go ask your Realtlor they can help you understand and talk you though it
2006-11-21 05:03:34 · answer #2 · answered by pattibcacl 6 · 0⤊ 0⤋