Home Buying in Charlotte>Question Details

Crystal, Home Buyer in Charlotte, NC

What is the best way to go about finding a reputable company to do a rent-to-own/lease purchase for a home?

Asked by Crystal, Charlotte, NC Sun Dec 14, 2008

A traditional mortgage is not an option for me at this time. How do I go about finding a reputable rent-to-own/lease purchase company? I am looking for a home in southeast Charlotte/Matthews. I have heard some of these companies take advantage of people. I have also heard this can be a good option for those of us with stable employment history, rental history, etc. Please advise. Thank You.

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I've got good news and REALLY good news. As those before me have stated RTO and lease options have proven themselves to be OVERWHELMINGLY predatory. The end result of these arrangements are the renter exits the arrangement 10 to 25 thousand dollars poorer.-----------To protect the home buyer (YOU) Mr Franks and Mr Dobbs presented a bill that was passed as the law of the land. The Dobb/Franks act imposed such huge liability on ANYONE providing financing for a occupant owner that this segment of the real estate market will disappear. Starting Jan 1, 2014 anything advertised as RTO or lease/option will be a pure rent and an associated saving account. YOU will have not control interest i the property. It is possible you can encounter a owner or investor who is unaware....and really make their life miserable when the option time arrives.------------ The difference between the reputable and not so reputable is one will clearly tell you that you are renting, while the other will let you believe what ever you want and know you won't read or understand the contract.---------All roads lead to becoming qualified for a mortgage.
0 votes Thank Flag Link Wed Jan 29, 2014
Like Crystal, I am also looking for a reputable company to RTO a home in Fresno, CA. Can anyone help me please? Any advice would be appreciated Thank You
0 votes Thank Flag Link Wed Jan 29, 2014
There are definitely people/companies that take advantage of this situation in a negative way. But there are also plenty of people/companies doing this in a very honest and legitimate manner. It is becoming an increasingly popular tool because more and more are in your exact situation.

Check out this section of our website to learn more about lease purchase opportunities for buyers:

http://leasepurchasebuyer.rarefindhomes.com
0 votes Thank Flag Link Mon Dec 15, 2008
Crystal,

Lease to own is becoming a more common option with today's market/economy.

In order to protect yourself from unscrupulous people looking to take advantage of you, I recommend working with a Realtor you trust and having an attorney draw up/review the lease agreement. Your realtor can help you find homes in the area where the seller will consider a lease option and help you negotiate terms that are fair. Not all sellers have considered this option, so it often pays to contact home sellers that have been on the market for a while to ask if a lease/purchase is an option they would consider.

Remember that a lease purchase includes a fully negotiated and accepted purchase agreement that is simply delayed until a later date. You will have some risk if you don't fulfill your obligation. If you have further questions about the process of a lease purchase or would like assistance in your home search, you are welcome to contact our team.

Michael
0 votes Thank Flag Link Sun Dec 14, 2008
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