Home Buying in 08081>Question Details

SAR, Home Buyer in Philadelphia, PA

I want to buy a home in Sicklerville credit score really low so thinking about rent to own. want a nice home but a reasonable pymt. can any1 help me?

Asked by SAR, Philadelphia, PA Tue Nov 8, 2011

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John Sacktig’s answer
Sar -

From my experience and interactions, rent-to-own does not exist.

Yeah, I know a whole bunch of agents are going to post here and say it does.. I do it all the time.. blah blah.
I think it kinda works in Montana and Wyoming.. but really have not heard of any that are "any good" in New Jersey.

O.k.. I heard of 1 and the seller wanted 2006 pricing for the house, wanted a high rent plus an additional $500 per month towards the "down payment" if you decided not to buy the house after the 1 year rental.. he kept all the money.. deposit and all. NOT a good deal.

Realtors here are going to ahve you contact them so they can sell you a house. Period.

If you DO get a rent to own at a good rate and it works out for you ( which I truly hope it does) please let us know!
4 votes Thank Flag Link Tue Nov 8, 2011
John gets a "thumbs up" from me for level-headed and brutally honest advice. John's right about the agents who'll promise the moon, the sun and the stars only to deliver a pebble and call it a moon rock.

I blogged about Rent To Own here on Trulia: http://www.trulia.com/blog/tcurranmortgage/2012/04/rent_to_own_bad_for_buyers_good_for_sellers

Trevor Curran
NMLS #40140
Flag Thu May 3, 2012
Read this... http://hometeamnj.com/3-lease-purchase-myth-busters/

Focus on fixing your credit first and don't be distracted with a rent to own. Find a stable, long term rental that's affordable so you can afford to pay off creditors if needed.... THEN once your credit is better, you can find a nice home BUY and live in long term. Sacrifice today so you'll have something tomorrow.

Good luck,
Joe Montenigro REMAX Home Team
Broker, GRI (856)374-2800 x106
Serving Gloucester Twp, Washington Twp & South Jersey Real Estate Markets
Read me: http://hometeamNJ.com/blog
Watch me: http://youtube.com/joemontenigro
Like me: http://www.facebook.com/JoeMontenigroREMAX
Search for Homes: http://hometeamNJ.com/search
About Joe: http://hometeamnj.com/about/
2 votes Thank Flag Link Tue Nov 8, 2011
I strongly recommend you review your finances, especially your credit, and take your time to prepare for the homeownership experience. Buying a home and taking on a mortgage loan is a HUGE step. If your credit score is less than 680, you really need to get better prepared so that you don't find yourself in trouble soon after buying your home.

Folks with poor credit and insufficient financial standing who purchased homes during the BOOM got easy mortgage money, but look at what happened after the fact. The mortgage is your responsibility; prepare yourself with strong credit, sufficient savings, and consistent, reliable income before you consider buying a home.

Sure, there are zillions of mortgage people who'll offer to help you with financing now. Based on my real world experience of 22+ years in this industry, I'd suggest those mortgage people aren't offering valuable assistance, only leading you to a potential financial disaster.

Trevor Curran
NMLS #40140
1 vote Thank Flag Link Thu May 3, 2012
When you are ready to purchase a home or have questions regarding home purchase, beware of agents who tell you they have done it all, know it all and have seen it all from what they have experienced (but really have not). No one can "sell" you a house if you cannot afford one. We are realtors and in the business of real estate, so naturally, if we can sell you a house we are going to do just that. How can we help people if they don't "contact" us? Remember, it is about first about building a relationship with your realtor and gaining his/her trust. Ask questions. Interview your realtor. If you feel uncomfortable follow your instinct. Do your research. Hope this helps. Good luck.
1 vote Thank Flag Link Wed Nov 9, 2011
Hi SAR. The rent-to-own market (also known as lease-option) can be like the wild west. You have several options available. I regularly consult and help clients find the best possible scenario.
Call me, 856-575-1818.
Robert Greenblatt
Keller Williams Realty, Cherry Hill
0 votes Thank Flag Link Wed Nov 9, 2011
Most agents will tell you not to do a rent to own because they do not know how to make money doing
them. They are out there and they do work. Me and my team do them in New Jersey, Ohio, Louisiana,
Missouri, and California. In my experience, when they do not go through it is when the tenant/buyer
does not get their credit score high enough to get a mortgage, or they do not keep up with the payments.

Make sure that you work with a lender and a credit restoration company so you will know if you will be able
to get a mortgage in 1-3 years. Also, make sure you do what they say and make your payments on time so
that the transaction goes nice and smooth. If you do not, you will more than likely lose your lease option

You yourself know that it makes more sense to buy than to rent. Why let your low credit score hold you back if
there is a viable alternative. Again, just make sure that you do not put yourself into a situation where that payments will cause you to default.
0 votes Thank Flag Link Tue Nov 8, 2011
Rent-To-Own is not the same with homes as it is with TV's and refrigerators. With housing, for the rare ones that do come along, the sellers usually are willing to rent for a short-term but then require that you enter into a sales contract at the end of the short-term rental. If you ever come across one (usually through the landlord directly) I would recommend hiring a lawyer to represent you due to the pitfalls that you could encounter.

You should focus on getting your credit score improved. If you're interested you can call me at 609-417-1086 because I work with a mortgage company that participates in a program that works with you, hand-in-hand, to increase your credit score. They usually can improve your score in a couple of months where you can qualify for a mortgage to buy a home. They are NOT a debt consolidation company or credit repair, but a credit restoration program/company.
Web Reference: http://www.terryiwaniw.com
0 votes Thank Flag Link Tue Nov 8, 2011
What do you see as 'low'? How bout your income and cash on hand. Any of either?
0 votes Thank Flag Link Tue Nov 8, 2011
Hello SAR,
Thanks for your question.
Have you gotten the copy of your credit report? Why do you say is so low? Is it medical bills or collections?
If your explanation make sense a Landlord may consider you but you have to be able to pay the security deposit and first month's rent and regular monthly rent on time.
Do you have any other monthly bills showing proof you paid on time (PSE&G, phone bills, other bills? Have you paid your current Landlord on time?
If all you have is in collection you will have to convince the Landlord that you will pay the rent on time.
Good luck in your search,
Ines De La Cruz, Realtor, ABR
RE/MAX Connection
Web Reference: http://www.inesdelacruz.com
0 votes Thank Flag Link Tue Nov 8, 2011
Depends on a number of different variables. If you want you can call me at my office 856-404-9260 ext. 141 Eleise Queensbury
Realtor Associate
Century 21 Rivera Realty
(office) 856-404-9260 ext. 141
(cell) 856-340-6603
0 votes Thank Flag Link Tue Nov 8, 2011
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