Home Buying in 07090>Question Details

Richard, Home Buyer in Fanwood, NJ

Are there any Rent to Own homes in Westfield?

Asked by Richard, Fanwood, NJ Mon Aug 10, 2009

I am interested in buying a home in Fanwood, Scotch Plains or Westfield but don't have enough money for a down payment. I am interested in rent-to own? Are there many of these homes in the area? Any advice would be appreciated.

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I would suggest that you steer clear of rent to own situations.

Most rent to own "purchases" result in the "buyer" walking away with several thousand less than when they started and just a little bit further from home ownership.

There are basically 2 types of rent to own offers.

The first is a lease option. This is where a potential buyer pays an agreed upon sum of money for the option to purchase a property for an agreed upon price, within a certain time frame. i.e. A buyer and seller agree on a purchase price of $100K, the buyer pays the seller $5K for the right to purchase the property for $100K within 2 years of the contract date. If for some reason the buyer isn't able to execute the contract within 2 years then all monies are forfeited and they would have renegotiate the sale price with the owner.

The other type is an owner carried contract. This is where the home owner acts as a bank and allows you to pay them some agreed upon down payment amount and then you pay the owner monthly payments for the duration of the contract.

If you're set on purchasing a "rent to own" home I would strongly suggest you consult an attorney before hand.

Many homeowners sell their homes using one of these methods, when they still have a mortgage on the property. If this is the case most mortgages have a due on sale clause, meaning that if the home is sold in any fashion they demand payment of the outstanding loan balance in full.

If you're set on buying a home in this fashion you would be much better off to purchase a home with the owner carrying the contract. As long as you make your payments the home will be yours eventually.


http://www.portlandareahomeinfo.com
0 votes Thank Flag Link Mon Aug 10, 2009
Hi Richard,

There may be, depending upon your price range and what you are seeking. Please contact me if you would like additional information!

Warm regards,

Erik Farber
Weichert Realtors
Office:(908) 561-5400
Cell: (973) 420-1156
Fax: (908) 756-5523

I invite you to view my website, http://www.erikfarber.com for all of your real estate needs.
Web Reference: http://www.erikfarber.com
0 votes Thank Flag Link Mon Aug 10, 2009
Richard,
it isn't the first choice of most sellers but the concept can be sold to seller of slow moving property.
What rent can you handle? This would be key one to figure out what kind of homes we might target. Credit good?
If you like I will offer you a no strings consultation where we build up your profile as a qualified buyer except one little thing--then we'll see the inventory that is within reach.
Call my cell-908-698-2630
0 votes Thank Flag Link Mon Aug 10, 2009
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