Long time home owner now divorced looking to rent a single family home. How can I find out about rent to own properties? What is co-op fee?

Asked by emartin, Smyrna, GA Wed Jan 8, 2014

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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Wed Jan 8, 2014
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 to get started.

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
brittneysell…, , Atlanta, GA
Tue Jan 14, 2014
Hi emartin,

a Co-op fee is how a real estate agent will be paid for helping you find a property. It is usually paid for by the landlord. Rent to own programs are a little bit more difficult to come across. I would suggest either renting or buying because finding a rent to own property will drastically reduce your options in choosing a property to move to.


BrittneySellsAtl@gmail.com
http://www.BrittneySellsAtl.com
0 votes
Robert Lei, Agent, Cupertino, CA
Wed Jan 8, 2014
Rent-to-Own properties are tricky. Rodney Mason listed all the reasons to be cautious. Good luck.
0 votes
, ,
Wed Jan 8, 2014
If you aren't in a position to purchase a home right now, your best bet is to rent a home that you possibly would like to buy and write into the contract that you have first right to purchase the home if the seller decides to sell. There aren't many properties that are listed as lease purchases. I'd be happy to help in your search. Feel free to call or email me for more information.

Thanks,
Siobhan Schaeffer
Realtor
Solid Source Realty Inc
404-641-3373 (cell)
770-475-1130 x5457 (office)
404-935-0722 (fax)
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