Are there any homeowners of the houses that I'm following will do the rent to own option. I'm trying to move an I don't want to have

Asked by robinsoninc1, Birmingham, AL Sun Aug 25, 2013

to move. My credit isn't that good I've been a victim of identity theft and I'm trying to get it back right. I've been renting this home I'm in for 4 years and my landlord gets paid every month on the 1st or 2nd never past the 5th of the month since I've been here an they can verify it. I'm just ready to move because I don't want to purchase this home.

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5
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Sun Aug 25, 2013
I do not suggest doing lease purchases/rent to own. There are simply way too many things that can go wrong with one from either side.

In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.

If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.

The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.

It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.

Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote
Jonathan Hya…, Agent, Birmingham, AL
Tue Sep 10, 2013
The lease purchase option is generally more advantageous to the seller. If you don't plan on actually buying the house at the end of the lease term, don't do it.
0 votes
Don Tepper, Agent, Burke, VA
Wed Aug 28, 2013
I'm not as negative regarding rent-to-own as some of the others here are. It's a good choice in the right circumstances. (To oversimplify, you have to be in a position where you can clean up your credit and buy conventionally in 2-4 years.)

Most houses won't be listed as rent-to-own. Very often, you have to approach an owner and propose that solution.,

Here's a link to a blog I wrote on how to find rent-to-own properties: http://bit.ly/findaleaseoption

Hope that helps.
0 votes
Aaron Sims, , Birmingham, AL
Wed Aug 28, 2013
Both statements below are sound. Your best bet is to get your credit fixed/repaired and qualify for a mortgage when able.

Besides a lease purchase being very complicated, as stated earlier, too many things can go wrong and neither side of the transaction is fully protected, finding an owner who owns a property free and clear that will finance a buyer who has questionable credit is even tougher. Those that do have lessor credit requirements usually want a rather large down payment in order to protect his or her interests.

Best of luck,

Aaron Sims
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Aug 25, 2013
We have no idea what houses you're following, but as Rodney says - forget about it. Rent, fix your credit problems, then buy.

All the best,
0 votes
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