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owner fianance or lease to own

695 Views 15 Replies 14 Participants Last post by  plowjockey
We are selling (or trying to sell) our house and 13 ac. The lending is really jammed up and no one is giving credit.

WE told our realator that we would be willing to offer owner fianance.

We have had and offer on the house,but it is for rent to own. We are doing the numbers and for it to be as good a deal as just outright buying The price of the house has to go way up.

In rent to own we still have to pay insurance and taxes so that is an out of pocket expense. We have a realator so I am not sure how her commisiion works.

Has anyone else sold a house by rent to own and what are some things we need to think about?
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Quite a few folks around here sell on contract. I'm told that essentially you pay for the house in monthly installments. The catch is that most contracts have a clause written into them that if you miss a payment the house reverts to the owner and you forfeit any money you've already paid into the house. I'm told several guys around here make a good living doing that. In one instance the person was within months of paying off their house, missed a payment and they lost it. Most of the time though they miss after a year or two and they figure it is easier to start over than to find another place to move to. As I understand it, very few of the places actually ever get "sold" since invariably someone eventually misses a payment. Miss a payment or not it is an extremely expensive way to buy a house form what I'm told and about the only people who do it are those with bad credit who can't get into a house any other way. Probably become even more popular now that credit rules have tightened back up.
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