It's a scam - if your name is not on the paperwork after signing everything you really are not the owner. When I bought my home in 1986 the minute i signed everything my name was on the lien/deed - I was the owner and I had to make my mortgage payments and get home owner's insurance - I was responsible for the house and property - I paid the property taxes. I did the upkeep and everything and when I paid the house off it was officially my house.
I’m so glad she was able to navigate her way out of that situation, with the right kind of help. There’s too many bad people out there who value taking advantage of others. Shameful. Being a lease option seller is a niche I would love to take ownership of, and help families acquire their goals of owning a home honestly. Im truly humbled by her story.
@@lbrown1192 Unfortunately not everyone has a 700+ credit score and bank rolls to drop on a home, thats the whole point of rent to own is to help the buyer with a lower level of credit and cash to get into a home and then work towards ownership by improving that credit and savings over the course of the lease.
$500 a month and I️ own the house in a year 👀 I’m sorry that already sounds shady as fuck, so point is get a lawyer to views these documents before signing because this is often like another language to us, everything sounds okay but we don’t actually understand. I️ was considering doing this but now I️ want to look at other options
I met a ex -partners grandfather who bragged on making $$$ a small fortune on rent to own Straight predatory - if the renter missed a payment then the property went back to him then he repeated renting it out again to people who couldn’t really handle these payments or a traditional loan
“Enter ye in at the strait gate: for wide is the gate, and broad is the way, that leadeth to destruction, and many there be which go in thereat:” Matthew 7:13 KJV
I'm an investor in Philly and I can see this video is heavily biased. You mention repairs and show a collapsing roof as if everyone does this? Really? I make sure the properties are 100% renovated and inspected by the township before I give it to the client. I want them to own it and I want to make a profit. I always recommend that use an attorney and definitely not my own
djmac productions Her excuse was ignorance it seems. Said she needed guidance. It was her own fault. I didn't know anything about home buying options either but I just went to the library read books to learn on my own then bought a home with no issues. This was in the early 90s and their was no internet. Today you have everything you ever want to know about home buying online,at the library,and I've even seen a community college course on home buying. People are just lazy. Anyone can have kids they can't afford. Why not challenge yourself and learn things.
What a mother..going through all that so your children can have a roof over their heads and a place to call "home". This world needs more mothers like you.
THE MOTHER ON A SEA - SAW IS COUNTLESS MIS - REPRESENTATION HIDE THEIR NUMBERS LACK OF KNOWLEDGE MAKE US A TARGET OF MALPRACTICE IN HOUSING SOME PAY for YEARS ASSERT THEMSELVES an INALIENABLE RIGHT GETS RETALIATION JUDGE APPROVES by " OPINION " EVICTION NOW HARM SLUM DOWN HILL NIGHTMARE UNLAWFUL VS " RIGHT TO THRIVE " ( LAW ) THESE MOTHERS NEED TO STUDY LAW AND CLASS ACTION CROOKS OUT of HOUSING " INALIENABLE RIGHTS " WE ARE DUMMIED DOWN for EXPLOITATION CONGRESS SHOULD be on PUBLIC REPORT CARD HIGH WAGE BONUS for PERFORMANCE SERVE THE PUBLIC MY SUMMARY !
There are a huge amount of renters that have gone through this same problem, whether renting to own or just unknowingly renting homes that are in foreclosure. Sad situation.
CLS is not accurate on certain statements they made. R2O is same as Lease Option Agreement. The tenant-buyer has to first fulfill their part to pay "rent" First. Then, get their credit situation fixed so that they can qualify for a mortgage. Some Tenant-buyers don't do that for various reasons. It is not a guarantee that the tenant-buyer gets a mortgage. The Seller is not responsible for any part of that. Also, the lady mentioned her terms of $500 down & $500 per month. Technically. She was NOT in a True R2O agreement. Why? Becuz of providing the TB(Tenant-buyer) with an option to purchase at a later time, the Seller should have provided the TB with an NROC(Nonrefundable Option Consideration). Meaning, if TB doesn't pursue a mortgage and decides to leave at the end of the lease agreement, the NROC payment is NOT returned to the TB. IN fact, NROC payments are typically anywhere from $3-$5K. So, this seems like an unprofessional Seller as well. R2O are for people with bad credit that want to reside in a nice home/nice neighborhood and are willing to pay a "premium" to live in that home until they get to a point where they can qualify for a mortgage. Again, the option to buy is the responsibility of the TB. Also, another false statement I heard from the lady for CLS is where the TB should be given leniency if they miss rent payments. That is absolutely FALSE. Until the TB closes on that house, they are technically a renter. If they don't pay rent, u are subject to eviction. The severity varies from state to state, but those terms should be clearly specified in the Agreement.
Thanks for sharing this video. I wish I had seen it before my Rent To Own nightmare. We were renting to own our home and had a small kitchen fire that my husband and I repaired ourselves. Unfortunately, we didn't have insurance, so we had to take out an $11,000 loan to fix the kitchen. Unbeknownst to us, the landlord collected $30,000 from his insurance by claiming damages unrelated to the fire. Now, his insurance company is coming after us for the $30,000. A few months later, the landlord sold the house, and we received a notice from the new owner giving us 60 days to move out. We are still recovering and fighting the lawsuit today. It was a hard lesson learned about the importance of having homeowners or renters insurance and having a lawyer review any home ownership contracts.
I understand the purpose of this video. And unfortunately there are some shady real estate investors....just like there are shady people in every industry. These types of deals are great for some people. It is just important to do your research, get legal advise, understand your rights and READ. But it is unfortunate that some people fall victim to shady business practices.
no its not its ment to be a way to pay off your property to the owner over time the fact that they need you to get a loan devoids the positives of rent to own
No, Brendon, you’re wrong. You’re mixing up rent to own/lease options with owner financing. Lease Option is just rent with an option to buy the house. The tenant buyer gets to live in the house and tie it up so the seller can’t sell the property out from under the tenant buyer. You’re expected to go and get a loan at the end of the term or move on. Owner Financing means you’re financing with the seller directly, the buyer gets title and the seller takes a note, and all monthly payments usually goes towards the purchase price until it’s paid off. However, there are times even in Owner Financing where there’s a term (time limit) and at the end of that term the seller is expecting to be cashed out completely. At that point it is the buyer’s responsibility to either get a loan for the rest or pay all cash.
Rent to own isn’t bad at all just have an real estate attorney look over the documents before you sign. At the end of this story she still rented to own. As long as the documents are right and you have the money at the end of the term you can come out on top.
Rent to own buyers typically do not have the disposable income to afford an attorney to consult them on all the legalities of a real estate transaction. Too many nuances and there has to be an understanding of risk and additional costs before even talking with an attorney. Also, generally the reason people think about RTO is because they can't get a traditional mortgage which is due to income and savings issues. If you cannot save for a down payment, it is unlikely you have savings for quality lawyer.
Christian Cantarutti yes that is true but like I said you can still come out on top if you can afford the property at the end of the term. I actually know someone who had a rent to own property. The tenant had three years contract. In those three years the property appreciate it 30k. Also during the three years he’s ROT payments were less then the actual rent. This time and extra income allowed the tenant to not only build up their credit to qualify for the loan but to also allowed them to save up for a down payment. At the end of the day they walked away with a house with 30k in equity.
I don't see any difference between a bank loan and rent to own to be honest.U might pay more for a rent to own in the end but then again lets be honest the price on a bank home is not the actual price u are going to pay when fully paid off.
Hi Ann, it's a big difference. The rent to own is based off what the seller what you to pay which could be way more than what it would cost you and you can't pay them off early as you can a bank.
Rent to own is like regular renting since you do not have the deed. You are not supposed to pay for maintenance and repairs yet-only improvements. Any rent-to-own person who tries to tell you that YOU are resposible for maintenance and repairs is a SCAM-PERIOD. Rent to own simply means that you get the deed once you have paid off the ACTUAL owner for the agreed price.
Have to be very careful when looking for a rental, paying the 3 months worth of fees, moving in & a few months down the road have an eviction notice placed on front door. Landlord didn't notify tenants house was in foreclosure. Read several stories like this.
The renter said she puts $500.00 down and pays $500.00 a month and then will own the home in 12 months? That doesn't make any sense unless the home is selling for $6500.00? Please clarify this for us ???
Uhmm..... rent to own is down payment put in money a few years then buy the house, not paid for in 2 years..... do your homework people dont blame your problems because of your ignorance.
This is great, people need to be informed by predatory deals like this where people are set up to fail. This is a great option for many people but you have to be careful and be on top of your payments so you don’t lose the house and your money invested.
At 4:59....$500 down and $500 a month for 1 year...? $6500 gets you a whole house? That does not add up at all. But I am glad she got some help. Impossible to fight on your own.
Its markets like that in a few major cities in the U.S. Those homes are in some pretty bad areas but they exist. I live in Michigan, there are a WHOLE LOT of homes like that here. Most are in Detroit but there are a few that are not.
Who's here after hearing about Jay Z Will Smith new real estate deal for minorities smh This is the America take advantage of the people that are less fortunate
kinda strange to expect ownership, without the responsibility of upkeep. First thing is home inspection, you have to know what you're buying. what's disclosed by the seller is key. Easily sue if they fail to disclose problems, but every state is different. Old homes always have expensive problems, especially snowy states, many homes falling apart from the foundation.
I'm preparing a rent to own offer split 75% towards downpayment and 25% true rent, 8 month length. I'm wondering whats in your playbook to do if the owner is reluctant to make the sale or avoiding me outright in order to let the rent to own option expire, keep the 25% over the last 8 months and retain the house. Any tips on how to protect myself? Thanks.
An option agreement that is recorded on the property at the courthouse is what you need. Also, what would motivate the owner to put 75% of your rent towards the purchase price? Are you paying over market rent? You need to structure a win win agreement, and have an attorney you hire be involved.
So they are complaining about them not having to pay for repairs, water, and all that, but the thing is, when you own the home, you are going to have to do that anyways. The rent is basically mortgage you have to pay until you completely own it
No think about it like this..she pays for repairs taxes and everything..then finds out her house is up for sheriff sale..yet if she refuses to pay because of it she get taken to landlord court and evicted.. not all landlords are on the up and up
This is sort of misleading. This was a bad RTO agreement but there are some RTO that workout for everyone involved. This would be like posting a video about how horrible traditional loans are because of what banks did to causing the mortgage crisis.
I think this is great with this mother is doing for her children giving them some sort of a future... the thing that I am confused about what if your landlord on a rent-to-own agreement is old and dies and has no children ..who do you make mortgage payments to ...how would you get the deed..
steve mitchell In a R2O situation, the tenant-buyer is simply making rent payments not mortgage payments. In the situation you describe, if there is no predecessor to facilitate the role of a Seller if & when the TB pursues a mortgage and completes the closing transaction to transfer deed to their name or some legal entity, the initial payments would not get applied to the original Mortgage lender and in that case, the bank would foreclose on the property and the TB would eventually be evicted due to no fault of their own. Even if rent payments are made in full & on time.
Wealth Creation what does it make any sense to me I've seen a lot of properties and homes be empty for even years.. for what I feel because property owners don't want to lower the rent to a reasonable lower rate... I have heard and seen of a lot of businesses go out of business because the rent is so outrageous and then the building stays empty not for months we're Talkin years and years...
steve mitchell That is a problem with the owner not doing proper research on the avg rents in the area. If a house is too high to rent, Vacancy will become a factor.
Those are the kind of questions you have to ask your lawyer. oThat’s why you must have a legally binding agreement on file with the courthouse. A good real estate lawyer will cover all the bases but you need to make sure for yourself by asking questions. I have learned to do my own due diligence.
Mortgages being transferred means almost nothing to you as a home buyer. Banks know how to handle these. Rent-to-Own agreements being transferred to a new owner while you rent creates ugly situations.
chaon93 Yeah it means nothing until they make mistakes. Going through four mortgage companies in less than three years is too much. And Bank of America and a few others were horrible during the Great Recession and housing crash with home mortgages. One of the reasons I was so motivated to paid off my 30yr. mortgage in less than ten years.
They never said what exactly happened with the original situation. Did they find a way to resolve it to keep her & the others in the property and did she finish paying her payments off...?
Bad.. Bad ideal...I lived in my house 16 year...sell price..47.000.000. I paid.. 87.000.000...I unfortunately got sick...and had to apply for disability.... wasn't able to make payments.... Seller.... took back home . Total loss.....👎
If I can SUE big time I will buy some land & I will build my OWN HOME mostly under ground! You can laugh but heating /cooling bills will be mostly non existent. I won't go into the whole thing but it will be well worth it. I would never be in an apt let alone a HUD owned anything again. Forget paying a million BUCKS for a little boxie home & huge taxes.
underground...yeah the excavation cost 5x conventional, and you have to dig a ton of trench drainage routed around your underground house or youll get mold and water rot. Theres a reason small underground bunkers cost $500,000 you can rent a CAT and dig a hole and frame up some walls and backfill it, but 2 months later that house will be the death of you.
Get the money from a bank or credit union! They will do the document checking as they will hold the title for collateral. Rent to own is just letting your land owner off the hook to fix things that break! I would not advise it!
Most importantly....dont make payments to the owner.....agree to make payments to a 3rd party who will pay the mortgage (a title companies) and have a Real estate attorney look over the paperwork.
ALWAYS DO IT WITH A LAWYER.....ALWAYS PAY THE MORTAGE COMPANY/BANK...DO NOT PAY YOUR LANDLORD. ALWAYS MAKE SURE YOU CAN PAY IT OFF EARLY AND PAYMENTS XTRA GO TOWARD THE INTREST.... GET A LAWYER.
SMH! If you are dumb enough to fill out binding paperwork on a multi-thousand-dollar transaction, you deserve what you get (buyer, seller, or investor). It is a fantastic way to buy and great way to sell. Just people dealing with people. BUT YOU HAVE TO CLOSE ALL DEALS WITH AN ATTORNEY!!
this video was created by the banksters who won't lend to people with poor credit at least we landlord's give people a chance to try Banks don't even give them that and most of us sell the homes the legal way
INVINCIBLE VISION REAL ESTATE unfortunately, the reputation others have created due to unethical decisions, has given investors a bad name. The bottom line with any kind of wealth generation should be to help others and give back to humanity. Yes, this is a business for profit just like anything else, however, said bottom line should be to help others through noble obligation.
J Davis Is is illegal for banks to loan money.The give you credit.People think credit is a loan.When you go to a bank for a loan to buy a home,you never get a check nor a loan.Ask people that got a mortgage via a bank.
Yeah the rent these days are getting ridiculously high, and jobs are definitely not trying to pay anything. Only organizations like 211 and @t will actually help pay your rent.
They don’t teach us this stuff in school for a reason. So the rich stay rich and the poor stay poor. Otherwise they would teach us these things that we all should be taught to survive and thrive in life. Everyone needs a Jennifer in their corner in my opinion.
When you goto a bank you pay for taxes and repairs (all they do is lend the money towards the house value- repair maintenance and utilities are always on the lessee) Rent 2 own is simply a Owner finance - if you can get a bank to finance you the owner would be absolutely happy to be relieved.... Utilities- are always paid by the person living in the home even renters pay Utilities So why r you making Drama - lol everyone I know who has done Rent to own has ended up owning it and they were not ever able to get a bank to finance them ... The owners had to carry the financing- you would be lucky to find such an owner Now what u need to do is make sure the owner is making payments on the mortgage if there is one- that's the biggest thing - that takes getting an attorney involved if you really want to be safe... This video is clickbait
500 a month and after a year she owns the house. ! ! Why she complaining. That's a steal... ( i think she scam the landlord) I'll take that deal. Any day... Also. What's wrong with being responsibly for repairs or water expenses ? For this birdbrain lawyer. Or anyone outhere that don't know. When you buy a house Thru a bank or mortgage the house is not yours really only in name. Cause if you miss payments. Guess what. They will take it and foreclose on you , meaning you get evicted... and quess what. Even if the house is not yours until usually 30 years You still responsibly for all repairs , insurance, furnace , roof , plumbing, everything. Ms birdbrain here. If your toilet dont flush the bank will not be sending noone to unclog it...
No different than getting a mortgage through a bank. High risk people are usually the ones that go this route. Lease with option agreement is a great way for one's with little to no credit or bad credit to actually have a chance at home ownership. It's a beautiful thing for lots of people.
I am going through this right now they are trying to sell the house right from under me forcing me to purchase right out, and the agreement was wriiten out just as you described. Now I have 8 days left, credit is not up to par need a lender its a mess
Lease to Own can be your Best way to buy a Home! Banks are not lending to people without stellar credit ratings and 20-30% Cash down. So you'll have to wait until you have saved your $20,000 to $60,000 down payment in cash and have a Great Credit rating, with little or no debts. Buying on Rent to Own or Lease Option can get you into a Home with blemished Credit and less money down, however you must be follow the rules of the CONTRACT. In particular, make your payments On-Time, be responsible for your own home repairs (like with actual home ownership). You must work on fixing YOUR credit rating too during your lease period so if your credit is below average, you can fix it to qualify for the mortgage loan that you will need to buy the house at the end of the Lease or RTO period. With Rent or Lease to Own, you in essence agree to Rent now (because You don't qualify to buy a House the traditional way today), and Buy, at your Option, in the future by getting your own mortgage loan, (depends on the terms of tbe agreement, say 2 to 5 or more years of lease term etc.. This is not rocket science but sellers should make sure the buyers fully understand the agreement. (Your Option deposit to buy is similar to what a down payment would be if you were buying with a traditional mortgage. And, a fair Lease to Own agreement will give you Rent Credits for every month you pay on the lease over the term of the agreement. In today's economy, RTO/LO (rtolo.com) Home buying can be the best, sometimes, the Only way to get started buying a Home for 30% of the population. We are an Honest and Fair Rent/Lease to Own Co., we can successfully help New home buyers 'Lease to Own' homes. Waiting to Buy a Home by renting and waiting for to qualify for a Bank Loan could cost you many years of time, thousands of dollars and lost family memories. Avoid the Horror Stories! Questions on finding the Best Lease to Own Homes in your area? We can Help, just reply with your comments or ask for Free Details!
LASVEGAS GEORGE There are financial institutions that offer 100 percent financing without down payment. BUT you have to have great credit and reasonable debt to income ratio. If you have more debt than income, you will get denied.
CONGRATULATIONS, 2019 I'M WONDERING DID YOU EXCEED YOUR DREAM NOW THAT IT IS 2022 IF YOU KNOW WHAT I MEAN IF THERE IS THREE OTHER APARTMENT COMPLEXES VACANT NOW THAT YOU HAVE COMPLETED THE PROCESS SHOULD YOU GO AHEAD AND TAKE ON THE NEXT AND LEAVE YOUR CHILDREN THE WHOLE ENTIRE BUILDING IN THE INHERITANCE OH SO BEAUTIFUL KEEP GOING GIRL
Why people put the cart before the horse and make the horse push instead of pulling my first house I saved a few thousand dollars and went to real estate company and got qualified for a mortgage loan and then with the agent went looking for a house and found the house I am in 23 years later and I took a 20 year mortgage and payed off the mortgage loan in 2019 and no troubles at all.and I bought the house in 1999
Obviously this attorney doesn't understand that contract law is private law! Lol you got to know the difference between public and private. They never mix. Public is CEASER and private is GOD'S.
Do not mess with BrightPath mortgage in Dunwoody, Georgia. I'm truck driver and an automotive youtuber. I was closing yesterday on a $187k house and they didn't have the money at closing. The loan officer lied at lease 3 time doing the process. I have great credit but he said because I was a first time home buyer. My interest rate should be 3.875. I've been on my job 13 years and in the same apartment for 20 years. He said that didn't matter because I was not paying a mortgage. He would tell me everything was fine but then call me at the last minute and say there is a problem and need something crazy. One of those times, he call and said the appraiser report was not coming back quick enough and I had to pay an extra $100 to speed it up.
I went through a loan officer in Dunwoody, Ga and my purchase was legit without a scam to pay an extra $100. You might wanna use my loan officer.; they help me big time.
@@LeadmeGuideme777 I'm suppose to sign again tomorrow and I hope they will have their Clay David (shit) togather. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-axPzc1GoaZ0.html
My grandmother told me when she was a young adult, everyone did sales directly between ppl and no banks. That's how she bought her house. Maybe ppl were different in the 1930s and were not so interested in scamming people.... Id say be smart about your buying and check the houses background, bank and lean info... 500 a month and you own in one year sounds way too good to be true!
There wasn't need to scam people in a time that wages were livable. Now that minimum wage hasn't risen and cost of living is so high people are finding ways to quick money even if its scamming
firestonegraywolf how can you buy a home without 3-10% down payment? imagine someone working minimum wage jobs and renting an apartment with (lets say) 2 kids. shes got rent to pay, electricity, a car note plus insurance, food, gas etc... barely making ends meet so they sure cant even get a credit card, which means low credit score, and when they finally do get a chance to save some money something always goes wrong. how the hell do you expect someone to just wake up and say im going to get a house now...? the cls lady is right, getting a home is THE hardest and most stressing thing to do in america. you cant even get a house with a 850 credit score if you dont have a down payment...
Here in Arizona, there are a few down payment assistance programs. The lender "loans" you the 3.5% down (that's the usual FHA down payment) and puts it as a silent mortgage (no interest, no payments). Live in the home between 3-5 years and the silent mortgage for the down payment amount drops off. I bought my home with a similar loan program. The lowest score you can have for this newest program is 620, the others are 660.
You shouldnt set yourself up for failure ethier.If you cant afford to save and pay for a down payment how are you to take care of the maintenance of the home or any major repairs that come up. Its not what people want to hear but you have to be realistic.
I always wondered what would happen if the owner dies b4 the transaction is completed, or if the owner uses the property as loan collateral after the agreement is initiated?
