Zillow Advice: Home Buying - rent to own are they true the company will guide you on how to take over the monthly payments and ev http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ Zillow Advice | Zillow Real Estate I would stay away from rent ... http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ I would stay away from rent to own. There are a lot of pitfalls. Sun, 14 Aug 2011 02:35:00 GMT http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ 2011-08-14T02:35:00Z Sounds fishy to me......read ... http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ Sounds fishy to me......read the Deed of Trust/ Mortgage contract that the current owner signed, specifically the clauses regarding Alienation, Acceleration of the Loan, and Assumption. Then call a qualified real estate attorney to guide you through if you still want to proceed. Sun, 14 Aug 2011 00:04:00 GMT http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ 2011-08-14T00:04:00Z In addition: make sure the ... http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ <p class="MsoNormal">In addition: make sure the agent you are dealing with is licensed by the Department of Real Estate by logging onto the Department of Real Estate's web site at <a rel="nofollow" href="http://www.dre.ca.gov/">www.dre.ca.gov</a>&nbsp;, cross reference their names and company to the internet/BBB/courts/anywhere and everywhere for tip offs by possible victims, make sure your payment is being applied to the loan, your agent should be able to walk you through this (keep all records of payment, <strong><u>never ever pay cash or wire money</u></strong><strong>(Nigerian Scams always involve wiring money, especially through Western Union),</strong> you need the paper trail), and be aware you will be bringing the home current and the agent's commission will be paid for by you (seller has no funds).<br/><br/>Finally, meet the agent at their place of business... You can cross reference the business through the city/county for their business license and on the Department of Real Estate's website it will have the address of the business (may show main corporate address for businesses with multiple branches).</p><p class="MsoNormal">These may be extreme precautionary measures, but if you are not dealing with a bank, a lot of safeguards are not built into the transaction.<br/><br/>Do not allow anyone to talk you into putting title into anyone else's name but yours.</p> Fri, 10 Dec 2010 16:41:00 GMT http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ 2010-12-10T16:41:00Z This can also be consider ... http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ <p class="MsoNormal">This can also be consider as a contract sale when you deal directly with the seller. You have to be extremely cautious and extremely careful the agent knows what they are doing, which is very rare...<br/><br/>If the bank is tipped off to this, and if they call the loan, you may be out of all the money you have invested in the home.<br/><br/>The reason the homeowner, in this situation when a NOD has been filed, is trying to off load their home is because they cannot pay for the loan and&nbsp;you will need to pay off the defaulted amount to bring the loan current.&nbsp;Now if the bank calls the loan and demands full&nbsp;payment right now or they are foreclosing, hopefully you have access to a lender that will fund a over market valued home (which is highly unlikely).<br/><br/>The homeowner isn't going to be able to get another loan and since you took over the loan, you are in&nbsp;a home that is over market price, in the majority of cases.<br/><br/>Banks are not calling too many loans right now, all they want is someone in the home making the payments, but once the market turns around and they are aware that someone has taken over the payments; you may have a surprise in the future. Hopefully by that time you will have the chance to refi the loan into your name, which will be a requirement in most cases (balloon payment in 5-years is typical and foreclosure is possible if you don't qualify).<br/><br/>What happens if you fail to make the payments? The person on the loan forecloses on you and takes the home back, just like a bank.<br/><br/>This may be a great option if both parties are willing to take the high risk, but that is exactly what it is, high risk.</p><br/>Good luck Fri, 10 Dec 2010 14:46:00 GMT http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ 2010-12-10T14:46:00Z I am a huge disbeliever in ... http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ I am a huge disbeliever in Rent to Own - PERIOD. <br/><br/>I think you will be much better off if you practice SAVE to OWN. Keep renting until you can afford to buy, this means get your credit up to par, save a down payment (fha only requires 3.5%) and then buy a home. Rent to Own is just a formula to loose your money.<br/><br/>Let me explain what is involved in Rent to Own for those not familiar with it. Landlords take the base rent and add an option fee to it each month. This option fee is then saved by the landlord to be used by the renter in a year as their down payment (or part of it). For example: rent is $1000 and the landlord adds $200 as an option fee each month. At the end of a year he has obtained $2400 (12 x $200) that is to be used by you to buy the house at the agreed on price which is the option you have been paying him each month for. If you don't have the additional money needed to buy and if you can't get a loan to buy you loose the option money and the landlord gets to keep it. The percentage of Rent to Owns deals that go through are tiny - like 3% and 97% fail which is a huge ripoff to buyers and a cash windfall to the landlord that kicks you out and does it to the next guy.<br/><br/>Save to Own makes much more sense. Fri, 10 Dec 2010 14:26:00 GMT http://www.zillow.com/advice-thread/rent-to-own-are-they-true-the-company-will-guide-you-on-how-to-take-over-the-monthly-payments-and-ev/377381/ 2010-12-10T14:26:00Z