Last year, I filed bankruptcy. this year, I had a voluntary reposession, next month I am planning on letting my house go on either foreclosure or short sale. I've missed 2 or 3 payments on my house, I've not missed any payments on my car payments BUT there is this guy who wants me to put 5 or 10 thousand dollars on a rent to own house and then the contract says buy it, or loose all the money I put towards it. Will my credit be okay to buy it? Or am I just wasting my money? Do you think I should just rent until my credit built back up? I used to have a 950 credit score, but because of a bad loan its to 550. Is it possible that this lady knows that I won't be able to get a loan in 5 years when the due date is so that i can purchase the house so that she will be able to keep the money? Or will my credit be better in 5 years?
2007-12-02 08:45:39 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You need to rent until you have good credit. You need to straighten out the issues that dropped your credit rating almost in half before jumping into any more commitments.
2007-12-02 08:58:33 · answer #1 · answered by gingerdaisy43 3 · 0⤊ 0⤋
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2016-07-18 19:43:30 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Boston is correct, if you are considering a rent to own, you need a rock solid contract.
Shysters are preying on those with troubled credit. They enter a contract with a bunch of stipulations to protect the property (which they should), but add provisions that are very challenging to meet. You rent for awhile, make a mistake and you are out without a dime.
Most rent to own contracts are set up a few ways. One is for those with troubled credit, you rent for a period of time (typically two or three years) to allow you to rebuild the credit scores. At the end of the contract you obtain a regular mortgage. Another option is for those with no downpayment, you rent for awhile and part of the payment is deposited in an account. When the contract expires, you have "saved" for a down payment. Some sellers carry the contract for the full term.
Make sure your contract covers what will happen to your deposit if you default or choose not to buy the house.
Whether your credit is improved in 5 years is up to you.
2007-12-02 09:14:55 · answer #3 · answered by godged 7 · 0⤊ 0⤋
Most rent-to-own fall through because the buyer keeps doing things to lower their credit score and often have a lower score than they had when they got into the rent-to-own.
Still I think it is a good way to go to buy a home. Your credit don't have to be as good as it used to be. If you can show your rent/option payment over the next five years were on time, buying the house will be a lot easier. Talk to a mortgage broker who work with people who are doing rent-to-own.
Also get yourself in one of those non-profit credit improvement program, your mortgage broker should be able to help you find a good one.
Then get a lawyer who has written lease option agreements.
Have the title checked for any liens or judgements.
Also record a memoraudum of option. Any lien attaching will then be in a junior position to your option.
2007-12-02 09:30:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
1 - Right now your credit is in big trouble. A lot of things need to change. You need to take some time and assses what you can reasonably afford.
2 - Bankruptcy. In five years, this will not be a problem
3 - Mortgage lates. This will kill your ability to purchase at a decent rate for the next couple of years
4 - Foreclosure. 5 years will be adequate for your credit to recover.
Your credit could be in great shape in 5 years. It's up to you!
2007-12-02 09:24:48 · answer #5 · answered by MDHanner 1 · 0⤊ 0⤋
Do NOT consider a rent-to-own scheme without having YOUR attorney draw up the contract! There are MANY pitfalls to this type of transaction. I have several personal friends who tried that only to learn that either the person they were dealing with didn't have the legal authority to transfer title or the owner had pledged the property as security for a loan. When they completed their contracts, they had no recourse except against a generally peniless seller.
If you can't afford to pay an attorney to draw up the agreement and run the usual title search then you can't afford to risk your money this way!
2007-12-02 09:05:09 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?VNpg
2016-07-13 03:15:50 · answer #7 · answered by Victoria 3 · 0⤊ 0⤋