Feel free to contact me:
Carolyn Jass, Realtor
Twin Cities Real Estate, Equal Housing Opportunity
Here's how I see RTO: The seller takes a non-refundable option payment, charges a higher-than-market rent, and, if the buyer can't qualify in two years, dumps them and tries again.
The buyer/renter, on the other hand, falls farther behind because they can't save as much (they're overpaying on rent), can't do much to improve their credit and chances for getting a mortgage, and if they do, the home may not appraise for the agreed-upon price.
Oh, and the seller might stop making the payments on the mortgage, in which case when the bank forecloses, the buyer/renter is totally out of luck.
That being said,which is better depends on you, the seller the cost, the property itself and other variables. call or writeput or if you want some in-put or assistance. Liz, 612-986-4105
Email me if you want to talk more.
Lease/Option is a one-way-street, benefiting the Seller,
The Seller can dictate the terms,
There is no FORM for L/O, neither are there guidelines.
There is usually no Realtor involved; its just between the Seller and the Buyer; therefore, no one to protect your interests.
No one to tell you what the house will be worth in 3-5 years,
No one advising you on the monthly rent, the Option money, or the Deposit.
You will lose everything if you cannot fulfill the Option on time.
Nothing will be reported to the Credit Companies, no help to your Credit Score.
Do you get a picture here?