Mainstream Media Spreads More Misinformation On Rent to Own
So we all know the media loves a good story whether not they have the details or if it’s actually true or not. Today we have a prime example of this from Fox News out of Kansas City the so called problem solvers blather on about how you shouldn’t use rent to own. Because I am such a strong believer in alternative real estate and rent to own specifically I’m here to set the record straight. First watch this uninformative finger pointing video from the media then see below for a breakdown of how they are not only wrong but missing significant pieces of information.
The first point they bring up is that, sometimes there aren’t things written in to protect the buyer. Now while their point is valid in essence, this is not a big problem there are plenty of things you can to do protect yourself as a buyer. We are very adamant about using real estate attorneys or professionals to help write in clauses and loop holes to help you the buyer in the case of the seller doing anything less than holding up their end of the bargain.
The next point they make is that you have to make a down payment. While this is also true the reason you pay it is to prove to the seller you are serious about buying the home. Although, this is disconcerting in the event you don’t buy the home, if you do, it goes directly towards the purchase of the home just like in a normal mortgage. In the event the buyer does stop paying the mortgage you could lose your down payment but, since it is public record the second the seller doesn’t make a mortgage payment you can have it written into your agreement that you will stop paying rent. We advise you to stay on top of your landlord to ensure they don’t default on the mortgage.
Finally they make off the cuff remarks about people making repairs before they own the home which is definitely ill advised until you actually own the home. One thing to note that is while minor repairs here and there are probably fine after all you plan on owning the home one day, the responsibility of major repairs still lie with the landlord until the home is officially sold. Check out our rent to own responsibility check article and learn what you are and are not responsible for.
The most important part of any real estate transaction is being educated. The media is not doing a very good job so I wanted to lend them a helping hand in explaining how rent to own really works with this article and many like it. I hope you find this informative and take everything you hear on the tv and news with a grain of salt. For more information on rent to own check out our easy to understand infographic on how rent to own works.