The houses are usually overpriced and sold to people that can otherwise "not" purchase a home and are somewhat taken advantage of. Given your situation with the tax lien, the chances of the rent to own scenario is probably not in your favor.
I am sure that there will be a bunch of people saying that I do not know what I am talking about and blah, blah, blah.. but, lets speak the truth. I have not seen one good rent-to-own situation, I have only heard horror stories.
If it works out for you and you find one.. let us know!
I would love to hear of at least one good rent to own that has worked!
You have received some excellent answers. Mitchell Pierce makes an excellent point. You must still disclose that tax lien to the seller. Most sellers will not provide owner financing and their agents will not recommend that they provide owner financing to someone with a tax lien.
John Sacktig makes an excellent point that such properties are often overpriced. I agree with John Sacktig, that most of the "rent to own" programs take advantage of the buyer and do not work out well for the buyer. I know there are others who say otherwise, but they have never shown me a "rent to own" that worked out well for the buyer. That i why I gave John a "thumbs up" for his answer.
John Souerbry makes an excellent point that most sellers who are willing to provide owner financing will have the same requirements as banks.
I recommend that you contact a good Tax Attorney, if you have not already done so, to get that tax lien removed as soon as possible. I have represented a number of clients who had tax liens. After we had a good Tax Sttorney get those tax liens removed, and after a short "waiting period" the Mortgage Broker that I work with was able to get my clients excellent financing.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org
You will have to disclose the tax lien to the seller. Once that happens, most sellers will shy away because tax liens usually trump the loan the seller makes to you. Thus, the seller could lose the collateral to the tax liening agency.
As far as whether a realtor can help you, you need a realtor who has authorization to arrange a loan. Seller financing is a loan. This means the realtor must have an MLO# registered with the DRE. Less than half do. Mine is 354360. My advice is to settle the tax lien and then buy a house. You'll still need seller financing for about 6 months to a year after clearing the lien
Give me a call and we can plan your future.
Intero Real Estate
If you are willing to pay a higher rate there is one option. You would need some down payment. At least 35%. A full financial review is still required.
My contact info is below. Best of luck!
Home Mortgage Consultant
(415) 271-7740 direct/cell
I do not mean anything wrong to any of my fellow real estate practitioners, nor trying to start any type of discussions by any means.
George, most realtors will not understand what you are talking about since they've never been exposed to these type of transactions and most realtors are taught the conventional way and cannot believe it is possible to get this type of financing without you benefiting from it.
See most realtors work for a commission and most are not investors themselves.
Look for a local real estate investor's Associations and network with these investors. The one I normally attend is the San Jose Real Estate Investors Association http://(www.SJREI.org) and we meet the first Thursday of every month. Go to their website and get more information about this association.
Also, I have had the privilege to meet Dyches Boddiford which have very good resources regarding creative financing information and techniques http://(www.assets101.com). He's a well known personality in the investment world.
Look into this resources and I and look me up at the next meeting.
To my fellow real estate professionals, if you disagree on anything I have said, please I don't want to know about it and nothing was meant for you personally.
I need to see the entirety of your financial situation, but based on your statement above I believe I can help you. Call me at 408-316-0793 or email me at email@example.com so we can set an appointment to meet.