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Ever buy a home "rent to own"?

Posted by on Dec. 20, 2012 at 9:00 PM
  • 13 Replies
DF & I have two houses that offer this option. I don't know how it works and was hoping for some advice, info ect

Thank you :)
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by on Dec. 20, 2012 at 9:00 PM
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Replies (1-10):
Mandahoney
by on Dec. 20, 2012 at 9:00 PM

 Yes but from my dad....so Im not really sure how it works.  Sorry.

ashleyrenee24
by 2ne1 on Dec. 20, 2012 at 9:01 PM
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BUMP!

Jaxsonsmama2009
by Gold Member on Dec. 20, 2012 at 9:03 PM
A friend of ours is doing it. Most that I've seen require a down payment. Then a percentage of the payment each month goes towards the mortgage. What makes them risky is that if you have to find your own financing (typically within two years) and fail to do that you lose your down payment and all the money you have paid. They can evict you. Our friends lucked out and found someone willing to carry the note until its paid off. From what I understand that's rare
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Lilred57
by on Dec. 20, 2012 at 9:04 PM
I want to know too so bump!

Sorry I'm not more help.

I know you can do either land contract or rent to own. I googled what the land contract was though, and that sounds pretty good. It seems like renting to owning would also be a good thing.
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Anonymous
by Anonymous 1 on Dec. 20, 2012 at 9:06 PM
Yea, but the landlord wanted us to finance the purchase through him (versus a bank) and wanted to screw is on cost. It was worth $130 and was trying to sell it to us for $240.
opal10161973
by on Dec. 20, 2012 at 9:09 PM

It really depends on the type of contract you get.  Make sure that no matter what you do, you read every. single. line. of it before signing.  I have heard horror stories of people getting completely screwed with these.  One was where the owner had the right to kick them out for small things, like improper yard care or weird stuff that would not be in a regular home sale.  Just be careful.

CocoBeen
by Gold Member on Dec. 20, 2012 at 9:12 PM
Never bought one that way but we did try to sell one that way that ended in disaster. All fixed now but still a huge pain.
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elephantmamaof2
by Ruby Member on Dec. 20, 2012 at 9:14 PM
This, a lot of times you'll be screwed on the value. Make sure to get your own appraisal before signing any contracts!


Quoting Anonymous:

Yea, but the landlord wanted us to finance the purchase through him (versus a bank) and wanted to screw is on cost. It was worth $130 and was trying to sell it to us for $240.

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happykitty316
by Ruby Member on Dec. 20, 2012 at 9:15 PM
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I sold a home that way.  The buyer was going through a divorce and finances had not been settled nor did she have any established credit.  So she signed a rental agreement as well as a purchase & sales agreement with the agreed upon purchase price.  She put down a small down payment/security deposit and then 25% of her monthly rent went toward the purchase price.  She had 12 months to come up with the cash or financing to complete the purchase.  It worked out well for all parties.

egbkeb
by on Dec. 21, 2012 at 12:35 AM
See, I hear horror stories too! They are only asking like 35k for the house with a 15% down. DF is talking about hirin a lawyer to prepare the agreement.

Quoting elephantmamaof2:

This, a lot of times you'll be screwed on the value. Make sure to get your own appraisal before signing any contracts!




Quoting Anonymous:

Yea, but the landlord wanted us to finance the purchase through him (versus a bank) and wanted to screw is on cost. It was worth $130 and was trying to sell it to us for $240.

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