If you are considering rent to own for a property which could be a house, apartment, or condo, why not consider the possibilities of owning it in the future? There are options to own your own home without all of your rent money going directly to your landlord. Landlords can sometimes make you an offer to put your money towards the actual mortgage or the actual home (depending on if they own it). When you think about what you are getting when you rent, you think about the space and the location. But if you owned the home wouldn’t you think about all the freedoms of having it as your own? When you own your own place you are in charge of everything, and everything in it is your own.
For example, if you think about driving a new car that is super awesome with all of the gadgets and technology that you love, you get into it and you just love the way it drives, except it’s not your car. It’s someone else’s and you are just paying them a fee so you can drive it. Why not have that fee go toward the total cost of the car? And every time you make a payment the cost goes down, month by month, the total decreases! And sometimes you could make a big payment, and the time to pay it off is shorter. This is the idea of renting to own. Your payments go towards ownership. Wouldn’t it be nice to have all your funds for rent go towards owning the actual house instead of towards someone else owning the house?
As an older man or woman, young woman or man, senior, young adult, picture yourself walking into your rental taking a deep breath in, and sitting down to relax thinking “I own this place”, instead of thinking “I owe rent next month and my lease is up in two months.” With ownership, you don’t have to think twice about where your money is going because as you continue to make my payments you are becoming an owner, with a rent-to-own agreement. You work hard for your money, why not see it go towards something permanent that you can call your own.
As a renter, you move around a lot, you have a lot of freedoms to discover communities, you chose a place and you live there temporarily, and you make payments. But with a rent-to-own apartment, condo, or house you are at a permanent location, your new base, this is where your money is going to go so you can become an owner. Think about all your income that goes towards moving fees, all the time you spend packing, all the energy spent feeling out a new area to live in. With renting-to-own your own home, you would never have to think about moving again, and you wouldn’t have to think about packing another box, you would also have all the freedoms to make renovations, additions, or changes to the place you are in.
As a new renter you might think it is kind of funny that your money goes to someone else, but as a rent to own that money would be going towards keeping the place for yourself. Which, if the place is for yourself you could also consider renting it out in the future, another benefit of owning your own home.
In the foreclosure market, people have lost their homes due to not paying the bills, and not paying their mortgage on time, or not paying their mortgages at all. This can sometimes happen for unfortunate reasons, however, sometimes it can happen due to poor life choices by the mortgage holder. The bank and the mortgage owner agree to terms that payments are to be made on a consistent basis (usually) and for a specific amount. In some cases, the mortgage holder can be late or miss one payment and can be foreclosed on and lose their house. In this instance, the bank takes the mortgage back and the mortgage holder loses their house,
In the case that a home is foreclosed on the bank puts the house up for sale along with the possessions from the previous owner, the bank takes everything. Anything that is in the home that has value is taken and put up for sale. The process is long and can be quite awful for a property owner to go through. Once the process of foreclosure is completed the house will go up for sale by the bank that the mortgage was held with. The price that the house is sold for is much lower, and there is no real estate agent involved. The bank does not want to hold on to the property for very long; it is losing money the longer it sits. So the house is listed at a lower price. This is an excellent opportunity for new buyers to get a deal on their first home. Foreclosure properties are found differently than a regular new home being built with a developer. Foreclosure homes can be found at banks, or at auctions, real estate agents will also know of these properties.
Buying a new home is an exciting and major life event, but can also be daunting. As you have read foreclosure is possible in the event that you fail in making a mortgage payment. So, some of the options such as renting to own can ease some of the pressure of dealing with the bank. However, if you have funds saved up and are ready to buy a home, you could save yourself money by buying a discounted home from someone that has defaulted on their mortgage. Which, depending on the size of your down payment can lessen the amount of time you are in your mortgage. Depending on your choice these are some great options for being a new homeowner, It is a big responsibility to own a home, so starting with some of the options discussed previously could be a safer bet for you.
