what should i know before renting to own a house?

Question

ii am about to look at a house and the owner is wanting me to rent to own it what all shold i know

Answer 1

Run the other way. Let me tell you what just happened to a client I assisted in a rent to own contract. My clients have been paying their rent faithfully for just over a year now and they got a knock on the door..the sherriff serving the owner foreclosure papers! Apparently the owner has been taking the rent money and not paying the mortgage for the past 11 months. Now these kids are out rheir money and their house. Yes the attorney said they can take him to court and sue for performance..but the forclosure fees and the late fees have increased the amount owed on the house so bad that it over what the market value is now. And sue what...you can't get blood from a turnip. The attorney said they can offer a short sale, but they are so clkose to the sale date, he doubts that will happen. I suppose you could enter into a contract if you were making the payments to the mortgage company..but what about the taxes..what happens if they take out a home equuity loan or a 2nd mortgage against the house and you aren't made aware of that. There are too many dishonest people in this world!

Find another way..buy the house on contract! This way you own it now.

Vicki Watzlawick
Broker Owner
Exit Platinum Realty
www.vickisdreamhomes.com

Answer 2

You shouldn't do it. I have looked into the unconventional ways of buying a house, without going through a bank with a mortgage. Rent to own means that almost everything you pay will go to the landlord, and not to the purchase price when you decide you do want to buy and get financed by a bank.

A better option is a land contract. It requires a down payment, monthly payments.. and you're responsible for upkeep of property.

An even better option, the best option possible, is finding a person that is selling their house that will take a trust for deed. Same thing as a land contract, except your name is on the title once you sign the documents and have an attorney do all necessary paper work (title search etc).

Answer 3

first make sure the rent is comparable within the neighborhood. Unless you are sure you'd be able to secure the property within a stated period, you could be throwing good money away. Second, the contract must spell out the rent to own details, including the what ifs....ie if one of you breach the agreement, or wish to abrogate the contract, etc. Third, have the contract notarized or witnessed .. simply signing it is okay but...

Answer 4

Rent To Own Home - http://RentToOwnHome.uzaev.com/?mFsB