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KGools
Happy
Member since 9/06 9532 total posts
Name:
Kim
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Rent to Buy Question
What exactly does this mean?? FH and I are looking to move somewhere bigger, we've just outgrown the apt. we're in now. We've found a place, a small house, that says "RENT TO BUY as LONG TERM RENTAL"
What exactly does that mean? Are we obligated to eventually purchase the home? And if we are, does the money we pay in rent go towards a downpayment??
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Posted 5/10/07 8:45 PM  |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Rent to Buy Question
No you are not obiligated to buy, and yes, your money goes towards the downpayment.
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| Posted 5/10/07 8:53 PM |
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KGools
Happy
Member since 9/06 9532 total posts
Name:
Kim
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Re: Rent to Buy Question
Posted by charon54
No you are not obiligated to buy, and yes, your money goes towards the downpayment.
THANK YOU!!!!!! 
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| Posted 5/10/07 8:55 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Rent to Buy Question
Posted by CoopersMom01
Posted by charon54
No you are not obiligated to buy, and yes, your money goes towards the downpayment.
THANK YOU!!!!!!
You're welcome. DH is always trying to convince me that this is what we should do with our house when we move to another house.
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| Posted 5/10/07 8:58 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Rent to Buy Question
rent to buy situations become more common when the RE market is down or slow like now.
Often people can't sell the house for what they want or the people willing to buy can't qualify for the loan so they "rent to buy" so that their mortgage is getting covered but there is hope the tenant will want to buy the house & if they have some long term good rent paying history plus the money they paid in rent taken off the price of the house they can probably get the loan.
When the market is flying there is just no reason to do this as an owner, there is always a chance you could burned.
As a tenant, I think its a good option. Especially if you like the house/area.
Ask about the landlord's specific terms.
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| Posted 5/11/07 6:12 AM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: Rent to Buy Question
My MIL did this years ago. In a down market. Just make sure you get a lawyer - it will be well worth it to get everything perfect in writing. MIL did this and they settled on the price in the down market (late 70s) and when it came time for her to "buy" it officially the market had turned up and the seller was upset, but she had a contract and he couldn't do anything
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| Posted 5/11/07 12:04 PM |
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KGools
Happy
Member since 9/06 9532 total posts
Name:
Kim
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Re: Rent to Buy Question
Posted by Eleanor
My MIL did this years ago. In a down market. Just make sure you get a lawyer - it will be well worth it to get everything perfect in writing. MIL did this and they settled on the price in the down market (late 70s) and when it came time for her to "buy" it officially the market had turned up and the seller was upset, but she had a contract and he couldn't do anything
Interesting, thanks for the tip!
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| Posted 5/11/07 2:50 PM |
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Re: Rent to Buy Question
I saw that a house down the block from me has a for rent sign out front, I live in West Islip if you are interested let me know and I will get the info off the sign.
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| Posted 5/11/07 3:02 PM |
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