Make sure the lease and option agreements state all of the agreements you have with the homeowner/seller when you are working out your rent to own home deal.It is important to have the proper lease and option agreements when setting up a rent to own deal.Often times, a tenant will sign the option documents without thoroughly reviewing them. It's not until later they find out the terms they agreed to when moving in were not actually what was included in the paperwork that was presented to … [Read more...]
Option period expired before you qualified in a rent to own
If the option period expires before you qualify for a mortgage, the seller no longer has an obligation to sell you the rent to own home.It is VERY important to speak to a mortgage specialist before (or during) your home search in order to gauge how long it will take for you to qualify for the home mortgage.Imagine moving into a rent to own home with a 12 month option agreement, then later finding out that you are unable to qualify for a loan for 2 years or longer!This is especially … [Read more...]
Who is Responsible for Repairs in a Rent To Own?
This is negotiated upfront BEFORE you move into the rent to own home. In most cases, the tenant is responsible for repairs to the home during the lease.But, these are details that you NEED to work out upfront, so make sure you include them in your lease and option agreements.Issues and repairs WILL come up during your lease period before you buy and anything you agree to verbally that is NOT in writing will not be legally binding.This is important if major repairs are required during … [Read more...]
Rent To Own Home Is Worth Less Than The Option Price
You find a rent to own home available, currently worth around $200,000. You sign an option agreement at the purchase of $200,000. 24 months go by and you are ready to close on the house.Real estate prices have dropped and the home has just appraised at $180,000. What Do You Do? There are a few different options available to you as the tenant/buyer and they should be written out in the option agreement you signed upfront. Tenant/Buyer Pays The Difference There is a $20,000 difference … [Read more...]
Seller stopped paying mortgage on a rent to own house
Unfortunately, we are hearing about this disaster taking place more and more often. Imagine This... You move into a rent to own home and everything is great. Then for whatever reason the homeowner is unable to make the mortgage payments, even though YOU are making your rental payment each month!Months go by and you don't find out until pre-foreclosure letters start showing up in the mail.There are a few things you can do to ensure this doesn't happen to you. You will never be able to … [Read more...]
Paid Way Above Market Rent
It is common to pay full retail or slightly above current market prices for rent with rent to own homes.Be sure you check out market rental amounts for your area, so you aren't over paying by too much!If the rent is high, try to offset it by getting high rent credits to offset the overall rental amount.There are a few sources you can use online to get an IDEA of market rent for your area. These are just predictions though, accuracy would depend on more exact factors (home qualiity, … [Read more...]
How Our Company Can Help Sell With Seller Financing or rent to own your house
If you are interested in how our company can help sell with seller financing then please read this article. When you are faced with a deal then it is essential to get the details correct. If details are not correct then the deal may not be sealed and a loss will likely occur. This can be a complex problem for sellers and it is important to find a professional company that can handle the deal correctly.Our company will help with supporting everything from marketing, locating a buyer, … [Read more...]
