Here is a link to a flyer, maximum income limits and a needs list to gather for processing a loan approval.
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
Homes selling over the listed price
Why would an owner do this And why would a buyer put down money thy could loose.
You just do the lease with a clause in it for first right if refusal if the owner decides to sell the property
This is what I do to protect the tenant/buyer. Good luck
Ingrid Ski Realtor
Hud.gov has a section on Lease-to-Own or Rent-to-Own transactions, and there are some federally owned properties that may be eligible. While banks aren't necessarily in the landlord business, some of the GSEs do offer homes for rent and for rent-to-own under the homelessness provisions.
Some important things to note, if the property is distressed, the homeowner will have little to no say in a lease-to-own. He or she needs to provide you with the lender's approval showing that the property is eligible for this type of transaction, and you need to contact the lender and verify that the approval is correct. And if there are deposits required, make sure you verify from the lender who is acting as their authorized representative before you put any money down.
Ingrid Ski Realtor
They want to get reid of the homes as soon as they can to cut thier losses, I dont believe they want to wait 2-3 years..
Most of the rent to own never materialize....
Unless you can verify that the bank is the 'owner' on any lease or rent to own deal, it's a scam & I mean thoroughly verify.
If the home is still owned by Mr. Smith who is in financial distress & is offering a rent to own deal, it may not be a scam, maybe they're only slightly underwater & with the way inventory has been tight & prices going up a bit, maybe the owner thinks he could sell in 1yr & at least break even.
Not every deal is a scam out there, but it's always a good idea to do a LOT of homework & verify Everything & make your clients aware of all the "what ifs".
Maybe this Mr. Smith really should just do a short sale right now & to your clients, if you're not very experienced in working short sales, you can shoot me an email directly, I don't look back on this same posting for answers after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate