With the mortgage crisis the way it is, the tightening of money from lenders or lack of money to loan. I get a lot of calls from buyers wanting to know if rent to own is an option. The short answer is maybe... Some ways to tell. If you apply for a loan and the interest rates puts the payments above what a similar home is on a rent to own home, then a rent to own home is for you. If you have credit issues that would prevent you from getting a loan then a rent to own could be for you.
Things to make sure you do.
- When agreeing to a rent to own you will want to make sure you make the payments to the lender and not depend on the seller.
- Make sure you put some kind of notice or recording with the courts that you have an interest in the property. Partly because you do not want the owner to be able to get a second mortgage or another loan on the home that would effect the contract. Whatever is proper in your state.
- You will always want to do a title search so as to not have any surprises, Do not try to save money here. Next to the wording of the contract this is probably the most important thing.
- Make sure to put in the contract that the seller is to not cause or seek a loan of any type after the contract date.
- You will want the seller to furnish a home warranty.
- There should be a dropdead date with a signed earnest money contract that defines how much of your rent applies to the pre-defined purchase price.
Things to make sure you don't do.
- Do not buy a home with an adjustable rate mortgage.
- Do not buy a home if any party says you do not need a title search at this time.
- Do not buy without the advise of a Realtor, there are numerous horror stories where the wording became a conflict and each party read something different when issues arived.
Rent to own can be a wonderful thing and works very well as long as you know what it is going in. Make sure what you agree to is in writing. There is no such thing as too much writing when it comes to understanding a contract.
Charles Stallions, CRS, CSP, CBR, CDPS, SREE, EREI - 800-309-3414, a leader in real estate investing, buying and selling. Lead Real Estate negotiator for several investment clubs as well as investors throughout the US. Call Charles for a list of references before buying or selling you what some consider being their largest investment. ______________________________________________________________________________________________ THOUSANDS OF HOMES.... One Address www.charlesstallions.com Pensacola, Pace and Gulf Breeze Homes for sale Looking for a home to rent, sell or buy in Pensacola, Pace or Gulf Breeze Florida then this site was designed with you in mind. E-mail charles@charlesstallions.com for a complete list of foreclosures, short sales, homes for sale or for rent in Pensacola, Pace or Gulf Breeze Florida area. Charles Stallions Real Estate Services located at 139 East Burgess Rd. Pensacola, Florida 32503 has a 12 member team, including experts on Loan Modifications, a Certified Residential Specialist,a Distressed Property Specialist with over fourteen years in real estate dealing in foreclosures, first time home buyer programs and investor sales. We offer full time, full service Property Management in Pensacola, Pace or Gulf Breeze Florida.Click here to view Homes for sale in Pensacola Florida or search pensacolamls for new homes on the market. Flat Fee of $2995 to SELL or MLS $1495 + 3 % We offer Property Management for $50. flat fee monthly Call Now 800-309-3414 for over the phone evaluation and NO Obligation
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