August 25th, 2008Renting To Own in Hampton Roads
Here’s a very informative article about the renting to own properties in the Hampton Roads area. This can be a great choice for both buyers and sellers. The article was printed in Virginian Pilot 8/23/08 and is written by Jeanne Mooney.
Whether you call them rent-to-own or leas-purchase agreements, there’s another tool in home sellers’ kit.
Mickey Collins’ client juggled two house payments a month last year while trying to sell her former home in Surry. The financial burden got heavy fast. “Get someone in my house to cover the mortgage, ” the real estate agent’s client insisted. Aid came in the form of a buyer who asked to rent the home for a year before closing a sale. He needed time to improve his credit.
Collins’ client agreed and signed a rent-to-own deal. Essentially, it was a purchase contract with a settlement date set 12 months in advance. It established a closing date, a sale price and the monthly rent the intedned buyer would pay in the interim.
The contract was roughly akin to an early possession agreement, allowing the buyers to move in before the closing date and put the onus on them for repairs. But it also included a promise from the seller to set aside $100 of the $900 monthly rent for the buyer to use as a down payment. Read the rest of this entry »