Rent To Own Homes: Recent Comments

Comment on How Does A Rent To Own Home Transaction Work?

2007-02-11T10:23:11Z

There are two important things to know:

a. What does your contract say about being late
b. How late are you going to be?

If your contract states that the rent is due on the first, and you need to pay by the third to get your rent credit, and you pay on the 4th, then technically you are late and you will not receive your rent credit. This will not void the contract, you simply will not receive the rent credit.

If you are going to miss the entire month it is more serious. Your contract may read that your option to buy will expire and you may lose all your accrued rent credits as well as your down payment. If you miss your rent completely a second month, then you also have to be concerned about eviction.

The key now is to talk to your landlord. Most landlords are nice people and they understand that people run into difficulties. Tell them you are going to be late, and why you are going to be late. Then tell them what you are going to do to make sure it does not happen again. Keep your promise and they will trust you going forward. Your landlord may decide to be more lenient on you than the terms of your contract calls for if you call them first.

Regards
Myrenttoownhome.com

Comment on How Does A Rent To Own Home Transaction Work?

2007-02-11T06:18:56Z

I have a rent to own home and this month I am going to be late on my payment.What could happen to me?

Comment on How Does A Rent To Own Home Transaction Work?

2007-01-21T11:38:18Z

I have a foreclosure on my credit report due to situations I could not control.I did not think I could own a home any time soon due to that.Now I know I can and I will try. thank you.

Comment on How Does A Rent To Own Home Transaction Work?

2007-01-21T11:47:25Z

If you are going to try to persuade a seller to go to a rent to own rather than an outright purchase, how much of the rent should go to rent credit and how long a term before you buy the house? Thanks

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It will be hard to persuade a seller of a regular home to sell on rent to own for the simple reason that they will not get cash for their home when they sell on a rent to own home basis. This does not mean it is not possible, it will just be hard.

In general, when the seller will sell on a rent to own basis (like our sellers do), you can negotiate the rent credit. Remember that banks will only allow the rent credit for the portion of the rent that is above market rent when you apply for the loan to buy the house.

How long you should negotiate the lease will depend on your credit situation. Talk to a mortgage broker and have them tell you what to do, and how long it will take to qualify. Use that as your guide when you negotiate the lease.

The myrenttoownhome.com Team

Comment on How Does A Rent To Own Home Transaction Work?

2006-12-07T22:34:18Z

Thanks this info is very helpful to those that has no clue about rent to own /lease....

Comment on How Does A Rent To Own Home Transaction Work?

2006-12-07T17:26:38Z

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Comment on How Does A Rent To Own Home Transaction Work?

2006-11-27T18:13:46Z

This info is very helpful for someone who knows nothing about rent to own. It is a quick, efficient blog to understanding rent to own. Thanks!