what is rent to own? and how does it work

Asked by Vonn Prak, 38117 Sat Mar 20, 2010

i would like to know more about the rent to own program

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Dan Chase, Home Buyer, Texas City, TX
Sat Mar 20, 2010
Look at the link below. There are several good replies. Pay attention to the one by Don Tepper.
http://www.trulia.com/voices/Home_Buying/Where_can_i_find_a_…
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Rebecca Hanks, Agent, Memphis, TN
Tue Mar 30, 2010
Rent to own or Lease Purchase is actually two transactions, the first transaction is a lease agreement with (2nd transaction) an option to purchase. In this second transaction the price is usually pre-set, and sometimes some portion of the rental deposit is applied to the purchase price, if this option is exercised. The seller may still have a mortgage, and is subject to default on their own mortgage. Which means that even if you gave a pretty hefty deposit, you may find your self evicted due to no fault of your own, if your landlord does not pay his mortgage. Another thing to know is that there are many unscrupulous "owners" who plan on you being late on your monthly payments, so they can keep your deposit and start the eviction process within a few days. Be careful what you sign. A Lease Purchase is similar to an owner financed property but Owner financing is a much safer transaction. The property is transferred to you, and the owner holds the mortgage. You can refinance, sell, or lease the property if you choose to.
Web Reference:  http://www.RebeccaHanks.com
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