Re: rent to own vs rent...

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Posted by: BetterDays!! on 01/13/04:

In Reply to: rent to own vs rent... posted by: ready to move on.. on January 13, 2004 at 13:35:27:

Rent to owns are usually for greedy landlords that want to make money on people who will default. They basically sell to people who can't qualify to purchase any other way. Chances are, the people will default and the landlord will get to keep the monthly payments and the down-payment.
They also have really quick default times. Instead of 90 days late, they could start foreclosure after the first payment is 30 days late.
This isn't always a bad deal for the buyers. Years ago, we purchased commercial land on a real estate contract that included the option for us to sell the property. We sold the property for a profit.
Just make sure that it is handled through a title company and that the moneys are handled through escrow. That helps ensure that the contract is on the up and up. You might also have a real estate attorney involved in the transaction.
Approach it like every other home purchase - do your homework and get a home inspection. Negotiate just like you are buying a house in the usual manner. Make sure that you still have the option of refinancing after 2 years - when you can qualify for an FHA loan.

: got our 7 discharge and are relieved--my thanks to all of you that help out her--my next question is after much discussion we are planning on letting our house go back since we included it in 7 are behind and did not reaffirm--htis means we have to move--we are moving to a new state and the market is saturated with rentals, homes for sale apartments etc...now my question several nice homes are listed as rent to own--im assuming the person could not sell it on the open market--if we choose to rent to own what are our responsibilities?
: what are the owners?
: if we rent to own should we have an attorney investigagte it for us?
: typically what are the pros and cons of rent to own?
: thank you...

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Subject : Re: Re: rent to own vs rent...

Comments:
: Rent to owns are usually for greedy landlords that want to make money on people who will default. They basically sell to people who can't qualify to purchase any other way. Chances are, the people will default and the landlord will get to keep the monthly payments and the down-payment.

: They also have really quick default times. Instead of 90 days late, they could start foreclosure after the first payment is 30 days late.

: This isn't always a bad deal for the buyers. Years ago, we purchased commercial land on a real estate contract that included the option for us to sell the property. We sold the property for a profit.

: Just make sure that it is handled through a title company and that the moneys are handled through escrow. That helps ensure that the contract is on the up and up. You might also have a real estate attorney involved in the transaction.

: Approach it like every other home purchase - do your homework and get a home inspection. Negotiate just like you are buying a house in the usual manner. Make sure that you still have the option of refinancing after 2 years - when you can qualify for an FHA loan.

:
: : got our 7 discharge and are relieved--my thanks to all of you that help out her--my next question is after much discussion we are planning on letting our house go back since we included it in 7 are behind and did not reaffirm--htis means we have to move--we are moving to a new state and the market is saturated with rentals, homes for sale apartments etc...now my question several nice homes are listed as rent to own--im assuming the person could not sell it on the open market--if we choose to rent to own what are our responsibilities?

: : what are the owners?

: : if we rent to own should we have an attorney investigagte it for us?

: : typically what are the pros and cons of rent to own?

: : thank you...

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