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Carlos Oviedo, Home Buyer in Adelanto, CA

How I be sure ,rent to own is legal?

Asked by Carlos Oviedo, Adelanto, CA Fri Jul 6, 2012

Some Realtor told me is risk

Help the community by answering this question:


Yes, it is perfectly legal and acceptable in todays economic climate. Many negatives answers are listed here and the are all written by realtors or brokers. Anybody care to wonder why realtors and brokers are so against it?

You don't have to pay a 6% commission (3%buyer agent, 3%seller agent) is the biggest reason they advise against it. If the " licensed" real estate industry was so above board and looking out for you, why/how did the housing bubble occur? Somebody had to sell all those houses knowing that bogus loans were used by people that could never repay. The only thought was of higher & more frequent commissions! That is what a RE agent or broker won't tell you!!

Call me or E-mail me if you have any questions or want the truth about Rent to Own.

Albert Marrujo Jr
0 votes Thank Flag Link Sat Jul 14, 2012
Note: links followed by (al) were entered by writer. All others are a solicitation for your business.

Most folks who consider a rent to own or lease/option are those who can not qualify for a mortgage.
One exception is those who are well qualified but the banks refuse to lend because their income is not W-2 based.
If you are not able to qualify for a mortgage,,,,there is a REAL reason. Trying to circumvent these protections will cost you a bundle of money in the end and you will still be without a home.
Spend the next year in becoming qualified for an FHA backed mortgage. The long term benefits to you are too many to list. Exercise financial discipline and enroll in a credit building program.
Where do you go? A local lender, one who has a long history in investing in the community via mortgages and small business loans. Call one of the loan officials you find after entering your city or zip code.

Select an "A" or "B" graded lender at: (al)

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041 - (al)
0 votes Thank Flag Link Tue Jul 10, 2012
I do not understand why a lease option would make you feel better than a lease. If you think your situation is bad now just put up a bunch of money or overpay for a home using this method and then have a mortgage underwriter reject your application 3 years from now because the way the contract is written doesn’t match mortgage guidelines. It doesn’t matter what you and the seller agree to, the underwriter is going to follow the guidelines. Keep your option money and find a lease. I linked some info below, hope it keeps you from get hurt.

As for not having the ex on title, wait until the divorce is final, good luck,
0 votes Thank Flag Link Tue Jul 10, 2012
I am getting divorce ,and Im tray to buy a home not including my wife in the title of the new home,
is some way to do it Thanks for your help... Carlos
0 votes Thank Flag Link Tue Jul 10, 2012
I think you posted an answer to somebody elses question by mistake, rather than your own question, but I'll take a shot at answering your question.

Yes there is a way, but you'll have to get your wife to sign off on title. You should contact an attorney, though, to ensure it is all done properly and your equity is protected.
Flag Tue Jul 10, 2012

You need to be careful with rent to own agreements. You may not have any way to compel the seller to sell the property when you want to buy. The seller may not be able to sell the property to you for one reason or another. For example, the owner of the property may get an additional loan or lien on the property while you have the rent-to-own agreement.

There are other ways to get you into a house, such as seller financing. Give me a call if you would like details.
0 votes Thank Flag Link Sun Jul 8, 2012
Hello Carlos
It can be done and yes you will be taking a risk, since you have to put down a large sum of money. Homeowners will ask you between 3&-5% of asking price. And if you don't qualify that down payment is not refundable.

Have you think about qualifying yourself first before you go to this extend?
If you have any other questions please contact me at 626-674-0847.

best regards
Ruth E Feast
0 votes Thank Flag Link Fri Jul 6, 2012
Well let me answer the question I think you meant...How can I be sure the owner I'm entering into an agreement with will still be the owner at the end of the lease term? You can't.....Yes it is legal, but if the owner defaults on payments and property goes REO, new ownershib voids your existing rent to own agreemnt
0 votes Thank Flag Link Fri Jul 6, 2012
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