The downside of renting to own.

[flippinout]

If you get behind on your payments and get evicted, you could lose your up front fees and rent payments.

Also, if you can get financing at the end of the contract, you will probably lose all the extra cash that you have invested during the rental period.

Then theres always the possibility that the owners are facing foreclosure and may not let you know this. After the foreclosure, the money is gone that you invested and you have no where to live.

When renting to own, you have to be very careful, check everything out before signing on the dotted line. And make sure you have an attorney draw up the contract.

[flip_it_fast]

Thanks for posting the great tips. Could you imagine paying the rent for years thinking that the house will be yours in the end and then it goes to foreclosure! Then you have no home and no money, essentially, you would have to start from scratch! That would be terrible.

[homealone]

I have to agree that renting to own a place then come to find out that it is being foreclosed on sure would put a damper on even the best of spirits!

I have seen something like this happen to a couple once, it wasnt a good thing.

Though its also possible to find someone who is honest and wants to help someone get a home and does the rent to own thing.

I have to agree that it is best to get an attorney and check everything out for you, make sure that its all legal and draw up the contract.

You could/would save yourself alot of hassle that way.

[badmomma]

Well that is kind of a bummer. I think however that if you can contact the bank as you are the renter and show them you have been making rent payments that they will work with you.

Show them the contract you may be surprised. Those guys just want the money they really don't want the house. Always read your contract and do the research to see if there is an existing loan on the home before you enter into any contract.

[homealone]

This happened to a friend of mine. She had been renting a house for many years then found out that she had to move because the house was being foreclosed on.

Then thanks to some helpful tips from everyone here, she went to the bank and spoke with the bank manager.

Now in just a short time she will be the owner of her once rented home. She has taken over payments on the house so that the bank didnt have to deal with trying to sell yet another home.

This all worked out nicely for her, and she is quite happy. When things start going bad, it is best to try your best to work through them rather than just going with the flow. If it worked for her, it may work for you.

Granted not everything can work out this smoothly all the time, but it never hurts to try something.