Getting a Rent to Own Home? Avoid These Costly Mistakes! 0
If you are considering getting a rent to own home, you will want to read this article. We will be taking a look at some things that you need to know to avoid making costly mistakes. After reading this article, you should be better prepared to get a rent to own home.
Ensure that you are dealing with the owner or an investor with a legitimate legal interest!
Many people are getting ripped off by people who do not own the homes, but somehow have access to them. For example, last year I was negotiating with a bank on a short sale. The home had been vacant for some time and the owner was just trying to get out from under it. We stopped by to take some pictures one day and were shocked to find a family of six living in the home. They assured us that they had just entered into a rent to own agreement on the home and that it was theirs.
In reality, what had happened is that a shady neighbor had a key to the home. He was running low on funds and proceeded to advertise rent to own homes listings on craigslist. Knowing that the home had been vacant for months, he figured he could lure some unsuspecting soul in and scoop up an option fee. And…he did! Now, where he went wrong was that the tenant buyer knew were he lived and he eventually was dealing with some pretty serious legal issues.
Ensure that the Property is Not in Foreclosure
Let’s face it – these are hard economic times. And when people get desperate, they will do just about anything to take care of their families. This has lead to many people trying to rent to own properties that they know are headed for foreclosure. Now some have good intentions, and think that somehow they will be able to get things straightened out. They may hope that they can do some fast credit repair and refinance. Or they may be hoping that a mortgage modification comes through. Whatever their plan, you are at risk of losing your money unless you verify that the home mortgage is current BEFORE you give them any money.
