Should You Consider Rent to Own.txt

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					Rent to own homes present a perfect solution for homebuyers and sellers
when it comes to the surplus of pre-foreclosures, foreclosed and REO
properties along with stringent credit policies. This alternative offers
cash-strapped homebuyers a chance to save on the down payment as well as
increase their credit standing. On the other hand, equally cash-strapped
pre-foreclosure sellers will be able to relieve himself or herself with
the impending foreclosure with someone else assuming mortgage payments.
Then ultimately, the new owners will take the property off one's hands.

While rent to own homes are no doubt an ideal alternative plan, the
theory may not carry out in real life scenarios. If seriously considering
this option, what are the key aspects to look for? Alternatively, is a
rent to own arrangement ideal for you?

Ideal Factors that Can Work to Your Advantage

The great aspect of this trend is most of the underwater homeowners are
now willing to take lesser upfront payments. This means a buyer or renter
is at a lesser loss when deciding to push through with the purchase. In
addition, with the flood of pre-foreclosures and foreclosed properties,
one can take a pick from the numerous choices available. In most cases,
home sellers who consider a rent to own purchase are actually well into
the desperation stage.

Potential Risks

As with any type of real estate purchase, these arrangements come with
its own set of risks. It is possible for the buyer to find out that the
homeowner has actually stopped making the mortgage payments while
property is under the lease term period. On the other hand,
owners/landlords can also potentially end up with a tenant who is remiss
in making payments on time and completing the purchase.

Who Should Consider Rent to Own?

Even with risks, one can foresee these arrangements becoming more popular
in the upcoming years. It presents one of the best transitional steps to
curing the housing market crisis. Despite the set of risks, it is still
one of the better options available for both homeowners and homebuyers.
If executed flawlessly, it can be the best pre-foreclosure deals one can
find.

However, here are some of the factors that need to take into account:

   1. Rent to own is not recommended for individuals who require time to
repair their credit standing to make a purchase.
   2. It is ideal if both parties involved have good track records or
those who have something more at stake, such as a long time tenant, a
family member or maybe a friend who is very interested in assuming the
property.

A lease to purchase agreement should be prepared by an attorney or real
estate professional to ensure the protection of the homeowner and
potential buyer. Moreover, as we all know when it comes to dealing with
contracts, the devil is in the details. This means one needs to take the
necessary precautions such as knowing everything about the homeowner. By
doing so, requesting for a home inspection and discussing thoroughly the
stipulations of the agreement with a fully outlined 'conditions
precedent.'

If one has a potentially ideal rent to own opportunity, go ahead and
explore the possibility. If keeping oneself well protected all through
the transaction process, it can turn out to be the perfect investment
opportunity.

Renttoownhomes.cc is the leading online listing service for Rent to Own
Homes.

				
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