Home Buying in 92869>Question Details

Garcia Kinca…, Real Estate Pro in 92706

Anyone heard of a legit "Rent to Own a distressed property". I have a client asking about this but my initial thought is it has to be a scam.

Asked by Garcia Kincaid Group, 92706 Sat Dec 1, 2012

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12
Melissa Chelius’ answer
Maybe you want to suggest drawing up paperwork for a lease with an option to purchase? Only problem is you don't know if the true owners are paying the mortgage or not. You would want to advise your client about the home being put to auction in that case...
0 votes Thank Flag Link Mon Dec 3, 2012
BEST ANSWER
Hello Heather, It has Scam written all over it. Check on the address for them and turn the scammers into the authorities. Do your clients have a BK or foreclosure in the last 2-3 years? That may be the only reason they are interested in a rent to own. Why would they want to rent to own if they can just buy and own? If not, They may consider CHF Access half percent down payment program with a minimum 580 fico score which can also contribute towards their closing costs as well. If they only come in with half percent down, they could apply other funds to their own closing costs and strengthen their offers.

Here is a link to a flyer, maximum income limits and a needs list to gather for processing a loan approval.

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sat Dec 1, 2012
Hi Heather, Let me know if you need my assistance as I assist Agents clients throughout CA with CHF Access and credit repair at no cost to raise fico scores to qualify. I specialize in Under 640 Fico Score Loans and can assist if you ever need my help. I would also google NACA complaints as I have heard of a lot of horror stories and there are a lot of complaints. I can close CHF Access within 30 days and NACA can not... I also offer MCC, mortgage tax credit program to assist your buyers to qualify a little higher when they are short of qualifying for what price range they want. Here is a flyer on that program too. http://www.under640ficoscoreloans.com/Documents/mcc%20flyer.pdf

Hope to hear from you for some loans and I will find you some clients to buy in your area? Have a great day. :)
http://www.Under640FicoScoreLoans.com
Flag Mon Dec 3, 2012
Thank you Sheryl. I will look into the CHF Access program. That sounds great. I also know about NACA as well, which is another great buyer program! I appreciate all the resources!
Flag Sun Dec 2, 2012
NO. I advise my clients to think of renting and owning as TWO VERY differnt things..


NO RENT TO OWN


ONLY RENT OR OWN!!!!!!

Kawain Payne, Realtor
1 vote Thank Flag Link Sat Feb 9, 2013
I know that there are lease with option to purchase homes in the mls, not sure if there are distressed homes in such category.

From what i understand, most lease with option to purchase are standard sales...
0 votes Thank Flag Link Sun Mar 10, 2013
Why do a lease option to buy, it requires a non refundable down payment. The price would be determined now and the owner may not do the in this type of real estate climate
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
949-874-0432
OCAreaHomes@gmail.com
0 votes Thank Flag Link Sun Mar 10, 2013
So you want to rent to own a short sale that is upside down....does that make sense? Sure let's over pay for a home. Or would you want to rent to own a home that is in foreclosure? Sure let's pay for a home that is going back to the bank........SCAM
0 votes Thank Flag Link Sun Mar 10, 2013
It depends on who the verified owner is, but the final decision will come down to the lender accepting the terms of the agreement. So you need to do some in-depth research before taking any kind of action, because these kinds of transactions can indeed be scams, but they're not always.

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.
0 votes Thank Flag Link Sun Dec 2, 2012
Thank you so much Jerry. This was very helpful!
Flag Sun Dec 2, 2012
I have heard if it and its mostly for the owners to rent back. If there are any I have not heard of anyone doing this out here yet Not something the banks are advertising as the inventory for these are a small percentage


Ingrid Ski Realtor
949-874-0432
OCAreaHomes@yahoo.com
0 votes Thank Flag Link Sun Dec 2, 2012
Interesting, thank you Ingrid!
Flag Sun Dec 2, 2012
There are a homes formsale for rent toown or lease to own. I dont believe anynogf those are from short sales or bank owned...
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....
0 votes Thank Flag Link Sun Dec 2, 2012
Okay, yes, Thank you!
Flag Sun Dec 2, 2012
Actually the banks ARE in the 'landlord business'. They foreclose on homes & then sometimes allow the now previous homeowner to rent back from them until they're ready to move the asset (sell). I haven't heard about banks doing lease to own, but one never knows what they'll decide to do in the future in areas where foreclosures are rampant.

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
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate
0 votes Thank Flag Link Sat Dec 1, 2012
Yes, thank you Emily, the key is research!
Flag Sun Dec 2, 2012
Three are rent to own properties.the agent sets it up and one needs to be informed on how to make it work. Our tem does this all the time.
0 votes Thank Flag Link Sat Dec 1, 2012
Could you provide a link on this Valerie? Furthermore, the lease to own has not been something you have worked with?
Flag Sun Dec 2, 2012
The Banks are not in the Landlord business.
This should be a 100% guarantee of a SCAM.
Some people are more vulnerable than others; they will think they are making out on a rental, anmd nothing you can say will deter them.
0 votes Thank Flag Link Sat Dec 1, 2012
Well, this was my instinct Ron, however, what I am reading in the replies is that there are some exceptions. Thank you for the reply!
Flag Sun Dec 2, 2012
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