Genoa, IL Area Rent to Own Properties- Buyer Beware!

Michael J. Cirone
Published on November 7, 2016

Genoa, IL Area Rent to Own Properties- Buyer Beware!

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Rent to own properties seems to be a growing trend these days. With interest rates at record lows, this doesn’t make sense in most scenarios.
Owners still want you to qualify with credit scores or longevity on the job to offer this kind of a deal. Just remember the old adage “If its too good to be true, it probably is!”
On average, I get 3-5 calls a week from potential buyers who have a basic idea about what they perceive to be a great deal. In most cases they aren’t. It’s been my experience that sellers are trying to unload properties which they owe more than the house is worth on the open market or have some kind of repair issues with the home. I’m not saying all of them do, but in my 26 years as real estate professional, there always seems to be a major catch to a potential buyer.
Genoa, IL area buyers that contact me think that all or most of the payment they make to a seller goes towards the downpayment and/ or sale price of the home. In most cases, very little if any goes towards the sale price of the home. The sellers usually demands a downpayment of $3,000+ which is non refundable if the buyer is late on just one payment to the seller or can’t get a mortgage in the standard market in a agreed upon time frame. Most deals I see, the sellers will give the buyer up to 2-3 years before deciding the deal is dead and the downpayment is lost. In the meantime, you are paying the sellers mortgage, taxes and maintenance on the property. Another issue that surfaces is when a rent to own buyer goes to get a mortgage at a local bank or mortgage company and is told the house won’t appraise out at the agreed upon price. What happens to the buyers hard earned money? In most cases it defaults to the seller and you turn back into a renter. My guess is you wouldn’t be happy about losing all that hard earned money on a wing and a prayer.
Before you decide to plunk down your hard earned cash with a promise of the dream of home ownership, please contact a Realtor like myself who can explain the potential pitfalls of this kind of deal and give you proper representation during the process. In addition, a local attorney to either review the sellers contract before ou sign it is always advised!

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Genoa, IL Area Rent to Own Properties- Buyer Beware!
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