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Is this really a bad idea? ETA

Anonymous
Posted by Anonymous
  • 16 Replies

we are moving, our credit isnt good enough to get a mortgage, but we found a house on a lease to own deal. Basically we will pay $650 a month for 50 months and then we will own it. We have a legit contract, notarized, etc. The house is not in great condition, but the owner is paying for some of the supplies. He bought the paint and the hardwood floors for downstairs, we are paying for the carpet in the master bedroom and the tile in the kitchen, that was the deal. We are also paying a couple friends to help with the work, and the owner of the house is giving us one month free in exchange for our labor. My SIL thinks this is a bad idea to spend our own money on a house we dont own  yet. I dont see a problem with it since we are going to own it in 4 years. Its a really good deal in my opinion. What do you think about it? 

yes, the house is actually that cheap, it was assessed at $28,000 so I'm actually paying a bit more than it's worth. I live in a small town, homes are cheap here.

Posted by Anonymous on Jan. 31, 2013 at 9:21 AM
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Replies (1-10):
Anonymous
by Anonymous - Original Poster on Jan. 31, 2013 at 9:23 AM

bump

LiesLiesLies
by Platinum Member on Jan. 31, 2013 at 9:24 AM
How are you guaranteed that you won't put all this money in it and then he sells it out from under you?
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Anonymous
by Anonymous - Original Poster on Jan. 31, 2013 at 9:26 AM

He put in the contract a guarantee that he will not sell it, he owns the house free and clear so the only way he could lose it is if he doesnt pay the property taxes. 

Quoting LiesLiesLies:

How are you guaranteed that you won't put all this money in it and then he sells it out from under you?


peanutsmommy1
by Ruby Member on Jan. 31, 2013 at 9:27 AM
1 mom liked this

he is going to sell a house to you for 32k???

if it sounds too good to be true, it normally is

Anonymous
by Anonymous 2 on Jan. 31, 2013 at 9:27 AM
Ehh go for it. If he violates the contract then you can sue him. Just keep track of everything you pay for repairs. We rent and we have out a bunch of money into the house to make changes we wanted. We still live here and want it to be nice.
Anonymous
by Anonymous - Original Poster on Jan. 31, 2013 at 9:28 AM

Thats what the home is worth in my area. Its 1,000 sq ft 3 bed 1 bath no basement. Its actually appraised at a bit less than that. 

Quoting peanutsmommy1:

he is going to sell a house to you for 32k???

if it sounds too good to be true, it normally is


Anonymous
by Anonymous 3 on Jan. 31, 2013 at 9:28 AM
2 moms liked this

That is not the standard "rent to own" deal.  Typically you pay a monthly rent that is higher than normal and a portion goes toward a down payment.  At the end of the time period the tenants get a mortgage and the landlord provides the down payment.


Did you have this contract checked out by a good real estate attorney?  I would not sign until someone with legal knowledge has explained any pitfalls to you.  

funny_girl3
by Gold Member on Jan. 31, 2013 at 9:28 AM

I don't see a problem with it, as long as you have a contract.  But I hope you know exactly what's in the contract.  You don't lose the house if you pay late, for example.  But I've done unreimbursed improvements in rentals because the landlord and I had different ideas about what I needed. 

Anonymous
by Anonymous 4 on Jan. 31, 2013 at 9:28 AM
It's a $30k house?? Um yeah something's not right there.
banana-bear
by on Jan. 31, 2013 at 9:29 AM
Wow, cheap home!
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