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Are rent to own home programs legit?
It seems like the sites and info I come across about renting to own, a house, are a bit shady? Any experience?7 years ago - 4 answers
Rent-to-Own is a legitimate way to buy a house if you have credit problems, no down payment, etc. It varies greatly, and it is all in the way a contract is written. ALWAYS have an attorney look over ANY contract before signing. Some paralegals can also look over a contract for you, but cannot give you legal advice.
Be certain that each thing is spelled out in black and white....how much of the monthly payment is rent, how much goes toward your downpayment, etc. Be sure that the amount going towards the down payment is held in a separate escrow account by the recipient of those funds.
Source(s):7 years ago
They are legit but you should expect to pay a whole lot more in the end for what you get.
Source(s)by jazzpaging - 7 years ago
Yes they are legit. These are called land contracts or contracts for deed. Most people get into the home and 1-2 years out with their cancelled checks can prove ownership and refinance the mortgage into their names. It is done all the time. Just make sure the contract is recorded in the court house for your protection. If unrecorded and the current owner gets sued and sustains the loss in court, they can and will attach the judgment to any thing they own in the way of real property.
I am a mortgage banker in Tennessee
There are good agreements that are as good as the people making them. If it looks shady or you don't understand something, don't sign it. Talk to a lawyer who deals in real estate to avoid pitfalls.
Know exactly how your equity is accrued. In my state, after a person has 10% equity the property would be sold at auction and monies going to both parties if a default occurs.