RentToOwn-HouseFinder.com
As a seller, what are the advantages and disadvantages of going in a Rent to own contract?
I would like to rent my house to someone and I am interested in a rent to own option because time is running and I have to live the country for my job. Now I want to know if I chose the rent to own option will it be any disadvantages or advantages for me as a seller and or renter? what are the risk linked to such a contract. could you please give me more details on the whole process of such a transaction? It's the first time I will do this so I don't know how it works at all. Plus the buyer seems to know how it works and we're meeting tomorrow. thanks all
Public Comments
- Don't be cheap. Hire a professional with such risks.
- What state are you in? You need to look for a "lease purchase" agreement online and let them sign that. The advantages are they can purchase the house after a year if they provide canceled checks and if everything checks out correctly with the lender they are referred too. If they are in the state of Georgia, have them contact me at jennifermortgage@bellsouth.net and I will show them what they can do to clean up their credit and how to get into the house when they are ready to buy it. The disadvantage is they can walk away anytime they feel like it. Talk to a mortgage broker or a real estate agent and they should be able to guide you and tell you what else you need to do to protect the house so they don't destroy it!
- unless you need the up front cash, it is a win, win situation. you recieve monthly payments but forfeit the responsibility of being responsible for repairs. you can also stipulate 2 yrs rent with 50% going toward down payment. make sure it is clearly stated that you are no longer responsible for any maint or repairs. you pay all taxes and insurance.if they get behind, you will be the one to suffer. stipulate who far behind they can get on payments before repo.. i know that owner financed property for 25 years on a 5 yr. contract. people change their mind or cant pay and leave much more often than they honer their contract.
