Rental Basics in Aurora>Question Details

dushonha, Renter in Aurora, IL

would like to start in a rent to own program to help rebuild my credit?

Asked by dushonha, Aurora, IL Sun Dec 30, 2012

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Answers

4
A LEASE/OPTION is very dangerous:
There is no set CONTRACT,
The TERMS can be daunting,
No one can see into the future; how much the house should sell for in 3-5 years, so it will have to be inflated to protect the Seller,
You don't know where you will be, financially, in 3-5 years,
You would lose all the money you have put in to the Option,
IT WILL NOT HELP YOU RE-BUILD YOUR CREDIT!

Renting and paying your bill will re-build your credit.
1 vote Thank Flag Link Mon Dec 31, 2012
thanks for the reply
Flag Wed Jan 2, 2013
Hi, Lastly, rent to own deals always favor the seller and the actual agreement should always be reviewed by an attorney, if you enter into one. A better strategy for repairing your credit is getting a secured credit card and building from there. I know many that have had a lot of success starting there. It is important to know that you shouldn't use more then 30% of your available credit and always pay on time. It is a process and you must be patient. Good Luck!

Chris
0 votes Thank Flag Link Wed Jan 2, 2013
As Scott and Ron made clear. "Rent to Own" is structured to exploit those thinking they can circumvent the immediate need to fix their credit issue and protect the owner of the home. Overwhelmingly, the 'renter' exits the situation much poorer than when they entered. These are the 'advertised' rent to owns you see frequently.

An exception does exist. Multi-dimensional real estate professionals can match a buyers situation to a sellers needs. This REQUIRES you to commit to the real estate professional. They will be investing time and resources in creating or finding this situation for you. If you are unwilling to sign a commitment, a professional will not work with you. This commitment will require:
1. Credit repair plan with a recommended lender oversight
2. Timeline for when purchase will be possible
3. Scheduled savings plan
4. Current savings
5. Patience
6. Any involvement in lender rebates will DISQUALIFY you.

This will take time, commitment and patience.
If you have what it takes, find the pro with the resources. Otherwise, contact a local lender and start your credit repair strategy without engaging a predatory home purchase scheme.
Go to: http://www.BankingGrades.com

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Wed Jan 2, 2013
Hi.

I agree with Ron. I would run the other way from any 'rent to own' schemes. Simply not worth it. Start saving a down payment for a house and go FHA when the time is right.

GOOD LUCK.

Scott Miller
Realty Associates
Boca Raton/Miami Beach
0 votes Thank Flag Link Wed Jan 2, 2013
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