are there any up sides to a rent to own or lease with option home?

Asked by VIRGF57, Sterling Heights, MI Sun Jul 1, 2012

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Kathy Persha, Agent, Birmingham, MI
Sun Jul 1, 2012
Rent to Own or Lease Option can be a blessing in disguise or your worst nightmare. I am a Realtor but began my real estate career as an investor. In fact, I am still an investor as well as a Realtor. At one time I specialized in Lease Options but as the market changed, I switched my focus to helping people facing foreclosure by concentrating on short sales. I can discuss the good, the bad and the ugly of lease options.

If the contract is written correctly and you know what items could cause problems in the future, you can protect yourself in the contract. Lease options are an amazing way to get into a home as a future homeowner with a small amount down and a payment equivalent to what you would pay for rent. Many times a portion of your monthly payment is credited to the principal. It buys you time to get your finances in order, raise your credit score and determine if this is truly the correct house for you. If you would like to discuss all the issues that you would face both good and bad with a lease option, feel free to give me a call. I have been on both sides of the equation as both the buyer and the seller on lease option transactions.

Kathy Persha, Realtor
Keller Williams Realty
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Karen Paytas, Agent, Clinton Twp, MI
Sun Jul 1, 2012
Good Evening!!

I'm a local agent and would be happy to discuss the different scenarios to owning a home.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
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Carla Muss-J…, , Portland, OR
Sun Jul 1, 2012
I agree with Eric Michael's comment . . . talk to an agent in the local area. While leases and rent-to-own are common in every state, there may be nuances that only a local agent would know for sure.
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Eric Michael, Agent, Northville, MI
Sun Jul 1, 2012
I think you'd be better off served calling a local (Michigan) agent. People from Louisiana and California don't have the same rules as we do.

Just saying.
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, ,
Sun Jul 1, 2012
Let me share what happened to my neighbor with this situation.
Paid a few hundred dollars a month over market rent. This amount was to be put toward the down payment. Neighbor was in the home for about 2+ years.
This was about $6000 extra toward his down payment.
About 2+ years into this arrangement, he came home one day and saw a sign on his front door that he had 3 days to get out of the property. The home had gone into foreclosure and he was being evicted by the bank.
He had to scramble for a new rental.
He never got his $6000 back from the sellers.

I would suggest having a third party (an attorney) handle this for you and handle the money and the house payment for you.

Otherwise...risky business
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Eric Michael, Agent, Northville, MI
Sun Jul 1, 2012
The comment listed below doesn't mean anything. They're from a different state and more than likely isn't a real estate professional.

Again, if you want more info about your question, contact me.

Eric Michael

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Casey Hayes, Home Seller, Crowley, LA
Sun Jul 1, 2012
The seller is not out from under their existing mortgage.
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Eric Michael, Agent, Northville, MI
Sun Jul 1, 2012
I wrote a blog about the negative points of land contracts. Check it out.

If you have any questions about it, let me know.
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