I am wanting to relocate to Indy and start life over. I would love to own a small house but credit is not tip top! I have been told I should look into renting to own, but I have no idea how it works...anyone know?
2007-11-12 12:27:01 · 5 answers · asked by chahta_ndn_girl01 2 in Business & Finance ➔ Renting & Real Estate
A lot of people totally get screwed doing this, so I don't recommend it. What happens if the owners decide they don't really want to sell? It happens all the time, and even with legal papers proving you have a right to the house, it is a legal mess that will completely outweigh the benefits. If you do this, talk to an attorney first. It may be worth it, but odds are you would be better off just renting and working on that credit before you try purchasing a home.
2007-11-12 12:35:41 · answer #1 · answered by Mr. Taco 7 · 1⤊ 0⤋
The first thing you need is a real estate agent who can walk you through this and many other confusing issues you'll run into.
Rent-to-own can mean a lot of different things and every situation is different. Usually it means you rent a place for a while and later you can choose to buy it and a portion of your rent that you paid over the months is applied as a down payment on your future mortgage. Other times it can mean that you make a certain number of payments to the owner for a certain number of years and at the end of that time, ownership of the house is transferred to you.
But again, you're new at this and need an expert to represent you. Get a realtor. They won't charge you anything as their fee is paid by the other side. But their worth is invaluable!!
Edit - Mr. Taco is right. People get screwed doing this ALL the time. The owner can change his mind or just kick you out whenever he feels like it with very little recourse because it's still his house. See why you need a good agent!?
2007-11-12 20:44:12 · answer #2 · answered by Keep On Trucking 4 · 0⤊ 0⤋
When you make your rent payment it goes toward the purchase of the house. Problems, You are responsible for repairs, if there is a claim on the insurence, most won't let you use it, because you don't own it. You have to pay for it , but can't use it. In buying regularly, the house is inspected, but with renting the house is not inspected, and basically you are buying as is, with no recourse.
2007-11-12 20:53:19 · answer #3 · answered by LIPPIE 7 · 0⤊ 0⤋
there are ups and downs in everything. what you need to take into consideration is, if you do enter into an agreement like this, are you stuck in a neighborhood you can't get your money out of. or will you be afraid to come out of your house.
small houses are in old areas, and most old areas are not the best place to live. i would suggest you check the area out, before you do anything, and remember there will be times you need to be out after dark, and thats a bad time in any neighborhood. best bet, rent in a better area and work on the credit.
2007-11-12 20:54:50 · answer #4 · answered by gen. patton 4 · 0⤊ 0⤋
rent to own is where you pay a monthly payment to the owners. but, instead of rent it will go toward the payment of the house. after all payments are made the house is yours! but, i strongly suggest you get a signed paper stating the payments and when they are made and, that this is a rent to own deal.
2007-11-12 20:33:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋