rent to own house in Richardson (Plano: foreclosure, for rent, mortgage broker)

[nconniej52]

Does anyone know of a house to rent and own in Richardson? or southern Plano? Son wants to find one.

[Squirl]

Why can't he just buy one; there are sooooo many scams in this kind of setup. Does he have awful credit?

[ggolf]

Why not work with a Realtor? I'm sure there are ones who would love to work with your son.
The alternative is Craigs list, or realtor.com.

[nsumner]

Originally Posted by Squirl

Why can't he just buy one; there are sooooo many scams in this kind of setup. Does he have awful credit?

This is so true. Thread very carefully when considering any of these arrangements. All the risk is to the tenant. The owner could take the downpayment, not pay the mortgage and your son can find himself on the street. This has happened many many times.

Craigslist is where most of the scams are too.

He should either rent or buy.

Naima

[Chi-ATL]

I totally agree with being careful with rent to own and at the same time want to point out that with careful due diligence it's a great way to buy/sell a house. I don't want to sound this like a self-promotion as I have sold dozens of rent to own houses with 90% success rate.

It's very important to check the references. When I do a rent to own I make sure that:

1) the buyer MUST have sufficient income to make the payments right now and to qualify for a mortgage in 1-2 years
2) the buyer MUST be able to buy it outright within 1-2 years
3) the buyer MUST enroll for a credit repair program (that I pay for)
4) the buyer MUST sit down with a mortgage broker to get a true idea if they will be able to buy in 1-2 years or not - once the mortgage broker is confident
that they will qualify with some credit repair then only the buyer qualifies for rent to own
5) the buyer does not have horrible credit - there may be some dings that disqualifies them for a mortgage right now (especially under the current mortgage climate) but these dings can be repaired over time
6) the buyer makes rent payment directly to an escrow/title company that is sent directly to the seller's mortgage company so that there is no possibility of seller not making the mortgage payments and house going into foreclosure
7) the buyer gets authorization to talk to sellers bank to confirm whether the payments are current etc.

There are so many other things that go into a successful rent to own transaction. The seller can get out of an unwanted house and the buyer can become a proud homeowner.