Is Owner Financing Or Renting - 1595 Words

I have a somewhat unique perspective when it comes to foreclosures. I have owned and operated businesses as a Real estate appraiser, real estate broker, mortgage lender, and insurance adjuster. For more than 15 years I specialized in the appraisal of foreclosed properties. Around 2008 virtually everyone in the appraisal industry became foreclosure appraisers. It was interesting to see people that had very little experience and knowledge in this area start to proclaim their expertise. It’s funny how little documentation or proof is needed to advertise as an expert. The first thing in the buying process that I would point out is that not everyone that claims to be an expert has the education and experience to lead you in a direction that is†¦show more content†¦I want to be very clear about something of great importance. I could go into all of the reasons why owner financing is better and there are many but I will simply say that as a former lending company owner that B anks exist to make money. They would like to see you finance your home and everything you buy for life. I am not saying that they have no good use. What I am saying is that you are typically going to pay more when you finance with the bank and the liability will likely be much greater. If you are going to owner finance you should make every effort to secure your position as leinholder. It is always best to have a deed issued although this might be something that the owner will promise to issue after a certain amount of time or number of payments. What I mean is that you should have legal representation and a valid contract should be in place and deed issued if possible. I have been drafting reviewing purchase contracts as an investor, real estate broker, real estate appraiser and mortgage banker for many years and very often there are errors or items within the contracts which make them not properly executed, expired, null and void, contradictory, or expose the parties to a great deal of liability. All of this may be avoided by having proper legal representation. Terms are often negotiable so don’t be afraid to ask for a better deal. If you aren’t embarrassed by the offer youShow MoreRelatedThe Economic Crisis That Hit The Country924 Words   |  4 Pagesseven years before that previous owner could be eligible for traditional loans. There are some programs to help such as the Federal Housing Administration that gives people a second chance with a foreclosure or short sale of a home. Low interest rates and low down payments, it gives people another chance to become a homeowner again. The potential buyer still needs to cleanup their credit to make themselves worthy of another chance. Many of the former owners are renting, but still have desires and hopesRead MoreThe Economic Crash Of The Late 1960s Severely Affected My Family857 Words   |  4 Pagesdepressions are the best times to buy real estate, and it’s an idea time for those who can’t purchase property to rent until they’re capable of excelling. Renting to own is a viable option for many financially-stricken Americans by eliminating the high costs of down-payments. Renting to own allows the seller to lock in a sale price while renting to another party, usually a small amount higher than a mortgage, but it allows the buyer to rent the house under contract until ready to purchase. The processRead MoreHome Owners And The Real Estate Market794 Words   |  4 Pagesothers. Many home owners are willing to consider the rent-to-own option, especially if they are in need of cash thanks to a move or other recent change in the sellers life-style. The rent-to-own option can be assimilated to a car-lease with a buy option per HowStuffWorks.com. Essentially a buyer pays rent as normal, and a portion of that rent is put towards payment towards the principal of the house. At the end of the lease or renting period the buyer can either continue renting the home with theRead MoreIssues Associated With The Private Rented Sector ( Prs ) Essay958 Words   |  4 Pageshousing will not be considered. The PRS is the fastest growing sector in the country and has surpassed the social housing sector (Wilson Johnson 2013). The PRS is one of the three main tenures in the UK housing market, next to Social Housing and Owner Occupation. The private sector declined in size over much of the 20th century from being the majority tenure prior to the First World War to the minority one about 8 decades later (David Rhodes 2006). The decline can be attributed to a number of factorsRead MoreRenting A House On The World Of Home Ownership843 Words   |  4 Pageschallenges that â€Å"boomerang buyers† are facing today, including (but not limited to) the option of renting-to-own. These strategies enable people who were once â€Å"foreclosure victims† to reenter the world of home ownership comfortably, taking gradual steps toward their ultimate goal of buying a new house. This is an essential component of the American dream, and one that everyone should be entitled to pursue. Renting a house on a month-by-month basis is a well-known strategy for people who are not yet willingRead MoreThe On The Foreclosure Crisis850 Words   |  4 Pagesmortgage. Unfortunately there were some very irresponsible decisions that contributed to the foreclosure of homes, for example, financing huge second and third mortgages to pay for frivolous activities and items. With the last half decade of hard lessons learned for previous home owners many are looking to venture into the market again with some more creative financing options. Many sellers are turning to options such as rent-to-own or seller carrying the contract with a down payment as well as buyersRead MoreBuying a House Is Better Than Renting an Apartment.1059 Words   |  5 Pagesâ€Å"Buying a house is a better option than renting an apartment.† In this essay I will discuss about the major benefits of buying a house rather than renting an apartments. While it can be costly it is a safer place to live that h as long term-investment and tax advantage. Buying a house may be difficult and it can be a confusing process, even for veteran buyers. Here are some tasks that housing experts say before getting into the buying a house. Get financials in order. Buyers should check their creditRead MoreThe Housing Crisis Of Boomerang Buyers954 Words   |  4 Pagesownership. Among these options, I like to explore some available avenues for those boomerang borrowers to include the rent to own option, Veterans Affairs backed loans, and owners financing option. First of all, the rent to own option is a superb option that allows the renters to apply the monthly rent to the purchase of the house. Renting to own, otherwise known as a lease-option, allow those people that are not in the immediate position to purchase a home due to financial constraints to save up the necessaryRead MoreThe American Dream981 Words   |  4 Pagesto get into this dream earlier than their predecessors did. I, myself, bought my first home when I was nineteen years of age. Maybe most aren’t quite that young, but typically I have a slew of clients that are looking to own a home, as opposed to renting, that are of the Millennial age group. You’d be surprised to find that the biggest reason for this is the fact that the cost of living has increased substantially and rentals are expensive. So, the logical form of thinking is to pay the same in rentRead MoreFirst Home Essay1529 Words   |  7 Pagesyoung couple was unable purchase their first home on the lake. The inability to come up with such a large initial down payment, the taxing stress that was encountered when figuring financing, and the cheaper rental opportunity that presented itself down the street ultimately derailed their initial thought of being home owners and the decision to not move into owning their first home was made. What was once the ever prevailing dream of owning a home in the United States has seen a change in the winds