Many potential home buyers are looking for a good deal, especially if they can’t afford the high prices of homes on the market today. While there are good deals available, buyers need to approach them with a great deal of care.
Two things that many people look for are rent-to-own situations or foreclosure homes. Here are some details about both to help you understand what might be best for your situation.
Rent to Own
You may have seen rent to own stores before and you can basically rent items, like furniture, and pay towards it in hopes of purchasing it someday. The same is true for a home. It’s basically an elaborate rental situation for people who can’t afford to buy a home for one reason or another.
Perhaps they don’t have money for a down-payment or they don’t want to carry a mortgage. Whatever the reason might be, rent-to-own is a rental status with the dweller hoping to buy someday or at least having the option to do so.
If you are looking for a rent-to-own home, it will be hard for you to find houses at this time. First of all, very few rent-to-own situations work out as people who rent aren’t often able to buy the house they rent.
Second of all, today’s market is booming and more homeowners would rather simply sell their house outright over dealing with a rental situation. If the economy takes a turn in the future, which it likely will as it always does, there may be more rent-to-own options on the market. But in today’s market, there are hardly any available.
This type of foreclosure occurs when the lender makes a deal on the property with a title company. The mortgage company forecloses and the house is auctioned off. This is the best and safest way to obtain a home in a foreclosure situation, but it is still possible to lose money in a deal of this nature so approaching with care is the best option.
In this situation, the bank will buy the property back and then do a little work on it like painting and fixing other things. They will then turn around and sell it as a bank foreclosure, hopefully, to make a profit over what they bought it back for originally.
3-National Company Foreclosures
There are national companies that specialize in foreclosures and some even have special areas on their websites for these options. The potential buyer has to register on the site and might even have to pay a fee to do so. They can then big on foreclosed homes without ever seeing them in person. This can be very dangerous and a lot of money is at stake.
Overall, if you want a good deal it is always going to be in your best interest to work with professional agents who specialize in foreclosures. You don’t want to get caught up in something that looks better than it actually is. Working with an expert can set your expectations straight.
Have Questions? Ask George!
George A Tallabas III