Home Buying in 11215>Question Details

jmvasquez3, Home Buyer in Brooklyn, NY

I pay very high rent...would like to find a rent to own. How does the process work and, is it a high risk?

Asked by jmvasquez3, Brooklyn, NY Tue Oct 15, 2013

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I am a local mortgage loan officer. Fee free to call me at anytime at: 347-414-3112.
0 votes Thank Flag Link Wed Dec 11, 2013
Hello....I work for a legal consumer firm that helps to resolve those type of credit issues. Please give me a call to see if I may be able to help...that is if your actually looking to get the situation rectified.

Sergio Marshall
972-231-0452 ext 109 http://www.whitejacobs.com
0 votes Thank Flag Link Wed Dec 4, 2013
I'm seeing a few responses stating rent to own can be risky, and this is both correct and incorrect. To understand why, it helps to also know how it works:

Basically, rent to own is a good option for people that wish to purchase a home but don't have the cash on hand to plop down on a mortgage. So, suppose you aren't proud of your credit score but you know that if you had a couple of years to improve it you could qualify for a loan. Or, maybe you just aren't in a position where you can afford it but you know that if you had a couple of years to save up you would have no problem purchasing a new home. If you knew there was a way to live in the home of your dreams right away while given the opportunity to get credit towards your purchase, wouldn't you?

That's where rent to own comes in. You are able to put down a highly discounted deposit that isn't nearly as expensive as the average price for a down payment, and it goes towards the purchase of your home (you agree to exercise your right to buy in a couple of years, whatever the agreement you and the seller strike up). Then you and the seller work to determine a monthly rental fee, and a percentage of the fee is credited towards the price of the down payment. You get to live in the home sooner and have just bought yourself time to clear up your credit.

This can be risky for two reasons. One, because you have to be careful not to bite off more than you can chew... Say you are not able to meet your mortgage and purchase the home in the agreed upon time frame. You lose your deposit. Two, you need to make sure you read the fine print and understand the legalese of the contract you sign. Sometimes miscommunication and lack of understanding the process and details can muddle things up on both ends... if you weren't clear about the details upfront, you might feel cheated and vice versa. An example of this can be not knowing that in the contract, the original home owner had the right to increase the asking price of the home in 3 years.

So in short, yes, this can be risky if you don't have a financial strategy and a good game plan on purchasing the home when it is time, and also is risky if you don't make sure the agreement you sign is beneficial for all parties involved. Rent to own can be a lifesaver and very beneficial for both buyers and sellers, so if you think it's for you, it's best to enlist the services of a professional real estate broker or seek an investor who has years of experience acting as the go between for these kinds of transactions. It helps you, the buyer, find a seller that's serious about a lease purchase or rent to own agreement much faster, and an investor with established connections is also more capable of sifting through his or her "inventory" of homes to match you with the right home for you. Buyers can especially benefit if the broker or investor is well versed in real estate contracts, home appraisal, and arranging mortgages.

This company connects buyers and sellers in New York, and they specialize in rent to own transactions. I am sure you can go around looking for signs along residential areas that say, "We buy houses" to snag an investor, but this group is easy to contact and a friend of mine told me about them. Worth checking out. Hope this helps! http://www.rent-to-own-homes.biz/
0 votes Thank Flag Link Sat Nov 30, 2013
Hi JM
I would google the subject and read up on it. Ann gave a very good response. I would also suggest
speaking to a mortgage person to see if you can qualify for a mortgage and once you have a definite
figure try to buy something. If you need a name contact me directly and I can give you someone to
speak to. good luck
0 votes Thank Flag Link Tue Oct 15, 2013
Ren to own is similar to a car lease; keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
0 votes Thank Flag Link Tue Oct 15, 2013
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