Rent to own homes?

[chevysoldier]

My wife is talking to someone that does this. I have heard of renting to own but know nothing about it. Has anyone here bought a home like this? Anyone do this for a living? I don't want to get sucked into a bad situation but I hate the apartment I live in now.

[max power]

I bought my place on a land contract that I paid off with a conventional loan within a year. I was paying 7% on it.

[TwiztedRabbit]

thats really what Theresa and myself want to do

[jporter12]

I've done it. It didn't work out so well for me, mainly because of the timing. It was at the high point of the housing "bubble" when homes were being over-valued bu A LOT, and I got financed for MUCH more than I should have, when it was time to settle the 2 year agreement of the land contract. I'll add more later, dinner's on the table.

[Likwid]

Rent to own works great if you're retarded

http://www.shopaarons.com/

[redrocket04]

It's how I bought my current condo. Due to a few minor marks on my credit, the banks wouldn't touch me at a decent rate. The guy that owned my condo had it paid for, just wanted to get rid of it. Looked at the credit, but also looked at the fact that ALL my income is disposable, I had good job time, my car is paid for, I don't have a credit card, and I had a pretty nice amount available for a down payment. We discussed it and came to agreement, where I buy the house, he holds the deed, I get contract stating that after 360 payments, the place is mine. Lawyers approve it, and it's valid. Fixed rate of 4%. I can pay it off without penalty, I can claim first time home buyers credit on my taxes (I did) and if I ever do anything ri-Tard-like, and get sued, theoretically, the condo isn't mine, so I can't lose it in a lawsuit. Not that I'd ever do anything like that to GET sued, but stuff happens. It's one less thing to worry about.

It worked out with the best of both sides for me.

It's not so much rent to own, as a seller held mortgage, though. I'm not paying stupid high fees, or interest, and the price I got is comparable to what condos in my complex sold for last year, so, good price, too.

[dustinsn3485]

I'm considering putting my house on the market for RTO or land contract.

[max power]

It's how I bought my current condo. Due to a few minor marks on my credit, the banks wouldn't touch me at a decent rate. The guy that owned my condo had it paid for, just wanted to get rid of it. Looked at the credit, but also looked at the fact that ALL my income is disposable, I had good job time, my car is paid for, I don't have a credit card, and I had a pretty nice amount available for a down payment. We discussed it and came to agreement, where I buy the house, he holds the deed, I get contract stating that after 360 payments, the place is mine. Lawyers approve it, and it's valid. Fixed rate of 4%. I can pay it off without penalty, I can claim first time home buyers credit on my taxes (I did) and if I ever do anything ri-Tard-like, and get sued, theoretically, the condo isn't mine, so I can't lose it in a lawsuit. Not that I'd ever do anything like that to GET sued, but stuff happens. It's one less thing to worry about.

It worked out with the best of both sides for me.

It's not so much rent to own, as a seller held mortgage, though. I'm not paying stupid high fees, or interest, and the price I got is comparable to what condos in my complex sold for last year, so, good price, too.

Thats basically a land contract, just without the land.

[redrocket04]

Thats basically a land contract, just without the land.

Well, yeah... Only difference I was able to find was that land contracts typically expire after 2-5 years, whereas this one will go the whole 30.

And hey, I have a VERY nice little 10x12 plot of land for a back yard... Until I build a deck on it, anyway...

[max power]

And hey, I have a VERY nice little 10x12 plot of land for a back yard... Until I build a deck on it, anyway...

Wow, you could mow that with scissors.

[redrocket04]

Wow, you could mow that with scissors.

I could, but lawn care is included in the condo fee.

It's mostly the green space around the buildings, etc., but hey, landscaping makes the whole complex look better, so I'm not complaining. lol.

[jporter12]

The way the land contract worked that I did was like this.

I had already found the place, this guy bought it (he was a real estate broker as well).

I paid a set amount more than the payment.

After 2 years, I bought it at a pre-determined amount, which at the time was about right.

I got decent financing when I got my own mortgage, but everything kept going up. I think the insurance was close to $200 more a month than when I first did the land contract!

Lot's of partying, and wasted money later, I got foreclosed on. Dumb move, but I actually came out better anyway, since I had to carry PMI, it's not coming back on me now. My credit was already trashed at the point anyway. My entire situation has changed since then, and living there would not work out as well as it does here. I have looked at what they have it valued at now onthe auditor's website, and it's only about 60-70% of what I had the mortgage for! THAT tells me that there were some REAL shenanigans going on in the real estate market!

The only thing the same as back then is I still suck at following a budget, and I'm still broke as a joke!

[MidgetTodd]

Wow, you could mow that with scissors.

I wish you'd come mow my yard.

[max power]

The way the land contract worked that I did was like this.

I had already found the place, this guy bought it (he was a real estate broker as well).

I paid a set amount more than the payment.

After 2 years, I bought it at a pre-determined amount, which at the time was about right.

I got decent financing when I got my own mortgage, but everything kept going up. I think the insurance was close to $200 more a month than when I first did the land contract!

Lot's of partying, and wasted money later, I got foreclosed on. Dumb move, but I actually came out better anyway, since I had to carry PMI, it's not coming back on me now. My credit was already trashed at the point anyway. My entire situation has changed since then, and living there would not work out as well as it does here. I have looked at what they have it valued at now onthe auditor's website, and it's only about 60-70% of what I had the mortgage for! THAT tells me that there were some REAL shenanigans going on in the real estate market!

The only thing the same as back then is I still suck at following a budget, and I'm still broke as a joke!

You gotta do your homework and know exactly what the property you are considering is worth before pulling the trigger in any property buying situation.

I wish you'd come mow my yard.

I'd only mow that yard twice a summer with a brush hog. My goats would do the rest.

[jporter12]

You gotta do your homework and know exactly what the property you are considering is worth before pulling the trigger in any property buying situation.

What he said.

Make sure you know exactly what is expected in the deal, and at the end of the deal.

[speedytriple]

I got burned the other way on a rent to own deal. I had a house for sale that would not move. built a new house and had to get rid of the old one. Listed it for rent had tons of people calling. found a couple who a neighbor vouched for as being good people. Went out got a lawyer to draft the agreement(brother-in-law does reality)

All seemed good till the 2 years ended and they could not get a loan for the house. offered to extend the contract for them. Thats when things got bad. They started avoiding us. had to start going over to check the house and pick up rent. House looked ok. Then they stopped returning calls. would not anwser the door when we went there. Then one day they just up and left. Did about $8000 worth of damage to the house when they moved out. Left no address to contact them at. So no way of finding them. Even the neighbor who knew them had no clue to where they went. LOng story short, House folded and sold at auction a few months back. Screwed my credit all to hell. Gotta love the housing market out there right!

[max power]

I got burned the other way on a rent to own deal. I had a house for sale that would not move. built a new house and had to get rid of the old one. Listed it for rent had tons of people calling. found a couple who a neighbor vouched for as being good people. Went out got a lawyer to draft the agreement(brother-in-law does reality)

All seemed good till the 2 years ended and they could not get a loan for the house. offered to extend the contract for them. Thats when things got bad. They started avoiding us. had to start going over to check the house and pick up rent. House looked ok. Then they stopped returning calls. would not anwser the door when we went there. Then one day they just up and left. Did about $8000 worth of damage to the house when they moved out. Left no address to contact them at. So no way of finding them. Even the neighbor who knew them had no clue to where they went. LOng story short, House folded and sold at auction a few months back. Screwed my credit all to hell. Gotta love the housing market out there right!

Man that sucks, sorry you got hosed. Gotta do your homework on both sides of the fence. Did you check their credit, job references, etc.? Maybe the neighbor just gave them a good reference to get them away from him.

[speedytriple]

Yep checked everything before we picked them over the other 20 people who wanted to rent. Nice enough people till they booked and trashed the house on the way out. Dont think I could handle having rental properties after what happened. Just worried about keeping the house I built now. And rebuiling my credit slowly.