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Re: Lease option (aka "rent to own")
by Katiekate (New York)
on March 26, 2015 @09:57
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Seriously, this is usually an offer made by people who cannot buy because of bad credit. So, think about if you would rent to them...no..then entering into a lease to own is a bad idea.
First, they "own". Can make modifications..etc. they will likely not pay taxes, utilities, etc. this will end back in your lap.
At the end..when no one will write a mortgage for them..you have a property back..but probably in very bad condition..and a long legal process to get it back and get your money.
Really..ask for a down payment large enough to cover it..$20k is not unreasonable. Then, require the rent plus a payment toward the closing costs. Like..if the rent is $1000 and the closing costs $5000 then each month require $1210 on a two year contract.
My guess is that they cannot pay that much less actually have the finacial where with all to buy. But, do not enter into this this someone who has bad credit..same as you would not rent to them.
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Re: Lease option (aka
by Anonymous
on March 26, 2015 @12:58
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"First, they "own"."
You're thinking contract for deed, not rent to own. Two different animals. Rent to own does not transfer ownership and tenant remains in status as tenant with a lease, which probably prohibits modifications; therefore they would not be in a legal position to modify the rental.
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