Contract for Deed/Rent to Own?

[ekmallette]

This is how we got into our house years ago. You don't often see this option offered any more unless the property has been on the market for a long time, or possibly town houses and such. I wonder why it's not as popular as it once was? Any comments?

[Lissy]

You mean you start out as a renter but later on proceed to buy the house?

[ekmallette]

Originally Posted by Lissy

You mean you start out as a renter but later on proceed to buy the house?

Yes, that's exactly what I'm talking about. You start out renting with a portion of each month's rent going towards the down payment. Then after a pre-determined amount of time, you obtain the financing and proceed to purchase the house. I think we were here for a year before we actually went ahead and made the purchase. It was a real fixer upper and we got in fairly inexpensively. Hubby is a contractor so we then refinanced a couple years later and gutted it and completely remodeled. I don't ever want to move now!!

[mandiees]

I have been seeing this more and more in my area with the recent wave of foreclosures - the houses that do not sell after foreclosure are offered to people on a rent to own basis. Who holds the deed to the house in this type of contract? Does the 'rent to own'-er only get the contract once the house is paid off in full?

[EugenS]

You get the deed after you pay the house. But you've got a contract signed, so you can't lose the house unless you stop paying.