Home Buying in 14522>Question Details

K.lang, Other/Just Looking in 14522

Renting to own

Asked by K.lang, 14522 Fri Feb 6, 2009

Any possibility for a rent to own situation in Palmyra, New York. If the broker's fees and bank fees were paid in cash????

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Ms. K’s answer
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Before you go any farther. Please read this:

Check out your landlord carefully before going forward.

More and more I see this. The landlord gets a tenant knowing a head of time that the property is nearing foreclosure but does NOT reveal this fact to the tenant. The tenant moves in, and postings start appearing in their mail or at their front door about the property being in foreclosure. The landord pockets the rent money and does not use this money as it is intended -- that being -- paying the mortgage. The tenant is notified that they have a VERY short period to vacate the premises. The tenant is stuck finding alternative arrangements immediately. It's amazing that landlords feel free to grill the tenant about important issues (AS THEY SHOULD), but the Tenant doesn't grill the landlords in return. Renters, ask questions. Due diligence is a two-way street.
Thanks for listening and please -- pass the word.
Kim
1 vote Thank Flag Link Fri Feb 6, 2009
The only way to truly know whether or not a seller is open to a lease-option is to make an offer on 1 or more properties in Palmyra with a lease-option.

Besides performing your own due diligence on the seller and the property, another thing that you or the seller could to help protect both of your interests is to establish an escrow servicing account (ESA) to handle processing your payments. The ESA agent accept your payments, pay the rent/mortgage, and pay the seller the remainder of the proceeds. This way you ensure that the underlying mortgage will get paid. This also protects the seller too, because the ESA company will notify him/her if you're late or simply haven't paid.
0 votes Thank Flag Link Fri Feb 6, 2009
K.lang; The way I understand you is that you want to rent a property and apply some option up-front money and maybe a share of your rent payments towards the downpayment of a home. This situation is called a lease option. In lease options contracts there is no Bank involved, so you do not have to pay fees to a Bank. Also, Brokers fees are usually paid for by the Seller/Landlord /(Optionor). So there are no fees that you have to pay to the Broker. In a typical situation, a lease option is conducted in the following manner. You find a home that you like, with the help of a Real Estate Agent ,where a Seller-Landlord is willing to do a lease option for you. Usually, option money is given up-front and that money goes towards the downpayment, if at the end of your contract you decide to exercise the lease option. Also, the portion of the rent money that was directed to go towards the downpayment. At the end, your up-front option money deposit, plus the share of your rent payments that was agreed upon to go to the downpayment, gets applied towards the purchase of the home when you exercise the option. A lease option again, is usually written for one year, maybe two years of renting and then 30 to 60 days to exercise the option. If you do not exercise the option, you lose the option money deposit and all the share of the rent that was marked to go towards the downpayment. You have to use a Realtor to find the home and also consult with a Real Estate Attorney. As mentioned by the three previous answers, you have to be cautious nowadays. Good luck.
0 votes Thank Flag Link Fri Feb 6, 2009
Hi K. More and more sellers are considering lease options in today's market. I live in Macedon and would be happy to look into which properties in Palmyra may have this option available. Feel free to e-mail me with more information about what type of home you are looking for.
Web Reference: http://www.KristenWahl.com
0 votes Thank Flag Link Fri Feb 6, 2009
Thumbs up from me for really good advice
0 votes Thank Flag Link Fri Feb 6, 2009
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