Wow! The majority of the answers to this question were positive! Thank you to all those who presented BOTH the negatives AND positives involved with a Lease-to-Own situation. And nice article.

Does this mean that people's (and Realtor's) attitudes toward Lease Purchases are changing? Let's hope so. Keep throwing those pebbles into the water and keep making those ripples! LOL

Darin

Hi there!

Please check out the following link to our website. You may have found your answer already, but we'd like you to see it from our perspective! We specialize in the very thing! We hope the information you find there helps and please contact us with any questions!

Thanks!

The rent-to-own relationship--if structured properly--is favorable to both the buyer and seller. The buyer gets to try before s/he buys, and can opt to not purchase, so the buyer isn't tied down (until s/he exercises the option and closes on the purchase). The seller gets a cash-flow, will possibly sell the property, and can re-rent the property if the buyer opts to not buy it.

The main pitfall to avoid is to sign the contracts without fully understanding the terms.

Andy, that is an excellent article! Thanks for sharing.

Great article regarding Renting-to-own:

http://money.cnn.com/2009/06/02/real_estate/rent_to_own/inde…

Good luck

Rent to own is a great way to buy a home if you have distressed credit or other problems today that can be managed or improved upon in the not too distant future. The pitfalls are many, however, and you have to stay on top of the situation to assure you have a great solution. Many times, folks think their entire rent goes toward a downpayment. It may even be in writing. Remember though, most banks and lenders will only allow a credit of these monies AFTER taking into account a fair market rent, unless these monies are actually available (as in an escrow account). Secondly, you want to make sure you are covered legally. Some of these agreements are registered in the courthouse, sometimes they are not. I think your best bet is to talk to a really good real estate attorney to either examine your agreement, or actually draw one up for you. This would be the best way to minimize your exposure and assure yourself you have done all you can to acheive your goal of home ownership! I am happy to recommend a great RE Attorney to you, should you wish. Good luck, I hope this helped! Jim

Greetings,
Your biggest problem in that situation is going to be the status of the mortgage. I evict people REGULARLY that are paying rent.

If you are getting your credit and money together waiting my not be such a bad thing.

The advantage to you may possibly be the sales price and NOT having to have what you ate in 4th grade examined by a lender. Rent to own typically is more attractive to bad/marginal credit.

Your biggest concerns are do you get any kind of credit for the 5 yrs of rent you've already paid?
What is the sales price, int. rate....terms of financing? Is the title to the property clear...want to make sure there are no liens.

Other than that good luck! I would ask for a mortgage statment if there is a loan.

Good Luck,