Vita Moodie: Rent to own means that a small portion of the rent paid will be applied to the downpayment should the "renter" purchase the home. Usually there is a time limit to make the purchase and use the "credit' but I have known of landlords continuing the agreement over several rental periods. It's a good idea if the 'landlord' is having a hard time selling the property.
Sammy Hatzenbihler: Renting to own or lease purchase agreements generally means that the person who owns the home will allow someone to purchase the home over time with a portion of that payment going to principal on the home and a portion going to interest charged.People doing RTO are not dummies and generally will not make a loan to someone who is heading towards foreclosure. Why? Because if one home is being foreclosed they don't want to deal with the hassle of foreclosing or evicting the renter.Another thing I have seen is people rent or lease to own and they (the renter) find out the hard! way that the owner hasn't been paying their mortgage. The bank will foreclose on the owner and evict the renter without regard to the fact there was a lease purchase agreement because they hold the lien on the title.This site may answer some questions.http://www.jscinvestments.com/faq.asp...Show more
No comments:
Post a Comment