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RENT TO OWN Help

I would like to rent to own and I need help on how I can do that.
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March 10 2013 - Beverly Hills
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Answers (2)

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You posted in "buying a foreclosure", so please be aware that lenders don't consider "rent to own" when selling foreclosures. 

While the theoretical concept of rent with the option to buy may seem attractive, some of the realities are considerably less so.

Owners who will consider rent to own are very rare, so it will cut down your options for properties considerably.   I consider it much smarter to spend a year or two working on improving your credit and (if necessary) saving up a good down payment.   Yeah, it is tough to move but it even tougher to lose a lot of money attempting to buy.

Some features of rent to own:

1.  Down payment required - often substantial (say 10% or even 20%) and is non-refundable if the potential buyer doesn't purchase.

2.  Monthly rental is above fair market rent, with the only amount going to purchase is the amount above the fair market rent.  This is also not refundable.

3.  If not qualified for financing at the agreed upon  time and price (usually a year to three), then you lose everything. 

4.  The price is agreed upon at the beginning of the contract, and who knows where house prices are going.

5.  You still depend on the owner to pay their mortgage.   If they fail, you lose.

If you do get involved in this, please involve an attorney in the contract.
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March 10 2013
Hire a local Realtor, they will be able to walk you through the process.
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March 10 2013
 
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March 10 2013 | 2 answers
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