Has anyone had any experience with "rent to own?"?
I'm looking to find a home. I have the income and down payment but not the credit. I live in northeast Ohio and see a lot of "rent to own" advertisements.
I was wondering if anyone has had any experiences with this method of buying a home? What kind of issues should I keep an eye open for? Is the whole thing a scam? Can the homeowner change his mind at any time, kick me out and keep the money?
Any help/advise would be greatly appreciated. Thanks
- Anonymous7 years agoFavorite Answer
Many property sellers elect to rent-to-own because this option ensures a sale easier and faster. Also, tenants will take better care of the property if they are purchasing it. Some sellers do it because it is easy to scam someone with little consequences.
Not all states allow rent-to-own options on a property so you should ensure any contract you enter is legal in your state.
Check the seller's credit rating and ensure they are financially stable. Have a deed search done on the property to ensure there are no judgments against it. Have the home inspected.
You can possibly lose the home during the rent to own process due to:
There is a mortgage on the property and the seller fails to make payments, the home will be foreclosed on by the bank.
The seller incurs an unpaid tax liability and a tax lien is placed on the property.
The seller loses part or all of his interest in the home in a divorce or lawsuit.
Ensure the terms of your contract secure what you have paid in, and you will be able to recover some of your money if one of these should occur.
Have your attorney to review the contact and make suggestions as to any changes that should be made. Do not commit to anything without first consulting with your attorney.
I know someone who purchased a rent-to-own home successfully. I also know someone who jumped into an agreement quickly without first taking precautions. He had to move with only 30 days notice, lost everything he paid in, including money he spent for improvements.
In all reality, not all rent-to-own agreements lead to trouble, but most do simply because people jump into it too quickly without taking action to ensure security for themselves.
- Go with the flowLv 77 years ago
Currently two states are trying to make Rent to Own illegal.
That is how bad it is for the buyer.
It never, ever turns out well.
A book could be written about the downsides.
For one, an owner could simply stop paying the mortgage. You would never know.
Also, he could die. Any contract would be null and void. The home goes to his kids.
I could honestly write a book.
Rent something cheap.
FIX your credit.
Save up a down payment on a house that no one will SCAM you out of.
- SlabberdaskenLv 77 years ago
Rent to own is a scam. Don't get involved.
Just think you have all the responsibilities of home ownership but absolutely no rights. You have no equity in the propety before your contract ends. You don't really own the property so you can't sell it. Should you default before that, guess what, you will be evicted and end up with nothing.'
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- acermillLv 77 years ago
LOTS of people have had experience with 'rent to own', and most of them are very unhappy that they ever got involved. The first two respondents list only a FEW of the possible downsides.. What will you do if the 'seller' declares bankruptcy ? EVERYTHING you paid goes down that bankruptcy drain.
RUN away from 'rent to own' as fast as you can.
- 7 years ago
Many people. They are almost all bad. This type of "sale" is becoming illegal in many places. It is NEVER good for the buyer. There is a 99% chance you will not ever end up owning the home. It's essentially a scam.