RentToOwn-HouseFinder.com
Lease with option to buy..too good to be true???
My brother in law recently invested in a lease with option to buy program on a $450,000 home. What I find strange is that he just foreclosed on two homes. When I asked him how the program worked he said that all he did was pay $5000 down and $2,200 a month for rent. Although this sounds great, what is the catch??? it can't be that easy with two foreclosures hanging over his head. Does anyone know how rent to own programs work???
Public Comments
- Rent to Own is so very much 2008. This is the way of the market this year because of the drop in sales, this is the way for people to get rid of their properties. the Issues with this is that the person doing the rent to own does not even know if your brother in law can qualify for a mortgage. They give the option to pay the rent for a year then take 50% of the rent paid to help with money as a down payment or off the purchase price. But he must be able to qualify for the mortgage when it is all said and done. So I would have him speak with an attorney. He may have had decent enough credit to rent, but he will not get a mortage for at l;east 3 more years.
- I hope your brother in law read the fine print. Many scam artists are using this as a way to beat people out of money for deposits and higher than market rents. Did he even check the title to see if the landlord owned the property he was leasing? Did he record the lease option? If he needs professional advice, give him my email.
- sounds like the local scam being pulled here in my area when someone is in foreclosure they want to take someone else down with them but put some undeclared cash in their pocket
