a home, that is. I know this prob. isn't the greatest way to go about home-buying, but when you're in a horrible/stuck situation? I know a lot doesn't go to the principal. But, a way to get 'one's foot in the door' home-buying-wise?





a home, that is. I know this prob. isn't the greatest way to go about home-buying, but when you're in a horrible/stuck situation? I know a lot doesn't go to the principal. But, a way to get 'one's foot in the door' home-buying-wise?
MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP
-Eartha Kitt





Just my own personal opinion, but given current real estate market conditions the signing of a rent with option to buy contract is the worst of both worlds right now. Under such a contract, the buyer and seller are agreeing to a sale price today, and the seller is willing to credit a certain portion of the buyer's rent payments over the next 2 years against that sale price.
However, two years from now the market price of the same house may be notably lower than it is today. Thus the decline in the market price of that house over the two years worth of option rent payments may equal or exceed the amount of the rent payments credited against the purchase of the house at todays market price. In fact, the rent with option buyer may actually be money ahead to 'write off' the option contract two years from now when the time arrives to execute, to let the seller keep 100% of the previous two years worth of monthly payments as rent only, and then negotiate a new much lower sale price for the same home !




This is not a good idea. I've read a few articles about people who did this, and all they got was evicted when the bank foreclosed on the house. Some of them even put down a large deposit and were paying a premium rental rate...





ok, thanks a lot!
MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP
-Eartha Kitt
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