Leasing to Own - Contracts are Important
Occasionally some will find possible appeal for purchasing homes using lease-to-own contracts. Sometimes one can rent a property and payoff mortgage debt at the same time then later decide if they wish to purchase the home and use some of their previous rental money to pay off mortgage mortgage principal.
I wish to reiterate that it is plumb stupid to purchase a property without having an attorney examine the rent-to-own contract first. Most rent-to own contracts end in in eviction, or in the buyer not actually purchasing the property, often because of contractual fine print.
If you aren’t careful, you may end up with a contract that makes it more profitable for the seller to evict you than sell to you. Guess which option will be selected. Remember, the whole point of a lease-option deal generally isn’t for the landlord to sell the property. It’s just a way for the landlord to collect 110% of the normal rent, and have the renter fix the place up real nice, and have the renter be responsible for the unit’s repairs.
Lease-option contracts will usually include some incredibly strict default clauses. For example, if you are late paying the rent just once, the deal is off, or if you violate any one of a number of other small infractions. One should keep in mind that it can be difficult to get out of debt and repair one’s credit in time to purchase a home.
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