Protect Yourself From This Rent To Own Scam

Renting to own sounds like the perfect solution to many people who might not be able to purchase a home otherwise. Rather than having to come up with a down payment which is far more than a lot of us are able to scrape together, especially during a recession where banks are less willing than ever to extend home loans, renting to own allows consumers to buy their home at a price comparable to what they’re already paying in rent.

Unfortunately, one of the unforeseen consequences of the recession is a growing number of rent to own scam operators looking to fleece unsuspecting would-be home buyers. There are a lot of different types of rent to own scams out there and it’s important to know what to look for in order to avoid being taken in by one of these criminals: the following is one of the most common to watch for.

Given the nearly record high number of foreclosure listings nationwide (and definitely record high in some states), there are a lot of unoccupied homes on the market and a shortage of willing buyers – the ideal conditions for an ambitious criminal to run a rent to own scam. These scam artists will gain entry to a foreclosed home and begin showing it to prospective buyers while representing themselves as the owner of the property. At least for a while, it may seem that everything’s fine, at least until the owner of the property finds a buyer to show it to or lists it with a realtor and the would-be rent to owners are out on the street again.

There are a few signs of this scam to be aware of; the property is usually listed at a price which is substantially (some may say suspiciously) below market price. There may also be some obvious signs of forced entry, with the scam artist mentioning the locks needing to be changed, etc.

There are two things that prospective home buyers can do to protect themselves from this scam. One is to use a reputable source like RealtyStore.com, where rent to own scams are already filtered out by the website's staff. The other is to consult your county clerk’s office of property records in order to make sure that the “owner” trying to rent you their property is who they say they are or if they’re running another rent to own scam.

The Five People You Meet At Your Open House

An open house is the standard when it comes to real estate showings. (An open house can be organized by the listing agent, or by the owner him/herself in the case of a for sale by owner house.) An open house means that anybody interested in the property can come on down if they know of the showing through either a print ad or an online ad.

Still, not every individual who stops by is actually a potential purchaser, which is something that any skilled buyer agent will notice. In fact, you could even say there are 5 kinds of people who stop by such a showing:

The Actual Buyer

This is a person who is actively involved in the home-purchasing process. Either way you cut it, this type of individual is either testing out the real estate market or his heavily committed to taking action sometime down the road. If you are selling your property, this is the person with whom you want to connect the most.

The Close-by Neighbor

This neighbor is not at all interested in buying up your property. In fact, a better term for this person might even be the nosy neighbor. This individual is only going to show up at your showing for his own ulterior motives. This could involve comparing your property to his, seeing how much privacy he has from your backyard view, and even seeing what kind of a person you are!

Agents Investigating the Showing for their Clients!

It is a known fact in the real estate world that some agents actually scope out properties for their own clients. A lot of agents do this, and, for the most part, they can be decent and polite while essentially acting as a spy of sorts for their clients! Occasionally, there are even rude agents who will say misleading things about a property while loudly 'talking to their clients' on the phone!

Agent who lost the Listing

Notice a guy or gal at your showing with a weird-looking disguise? This is that agent with whom you previously spoke about listing your property, but who lost the listing when you chose some other agent to do it! It is not uncommon for such an agent to come by and see if you took any of his or her suggestions during your showing.

A Prior Owner

Sometimes, a previous owner of your property that you are now selling is going to pop up when you hold your showing. This can be a decent time for you to reminisce with said owner about their own experiences and memories in your home. Of course, such a seller is not going to want to buy your home, though!

Own to Rent: Not A Good Choice

Bank of America is trying a new approach to help people get through the recent economic troubles, but where rent to own housing was such a success, the new own to rent housing is looking like it’s not as popular – and certainly not the kind of thing that a wise investor would consider!

The housing market has been a bit tight recently, and the truth is that millions of people around the country have felt the crunch as the economic situation slowly wobbles its way to recovery after the Great Recession of 2008. Though many believe that the situation has been left far behind, a closer look at the financial markets shows that things have only begun to improve in the last few months. While the housing market has taken a turn for the better, things haven’t quite yet stabilized.

Bank foreclosures have been higher than normal in the last few years, and the rent to own housing arrangement has proven to be a boon for all. Many people were able to live in homes that they currently were renting, but they were able to tack on a rent premium that went towards the closing costs of their new home once their rent agreement expired. This was a huge help for people who were recovering economically, but who were unable to purchase their dream home at the moment. They could rent the home, and thus put aside towards buying it in the future. Most of these rent to own leasers ended up with a bit more equity on their home than they expected.

However, the new Bank of America initiative is actually the opposite, and the new own to rent option is taking a lot of flak – both from RealtyStore.com experts and from real estate professionals around the country.

Where rent to own houses enabled people to rent houses in order to buy them from their owners, own to rent housing is exactly the opposite. The owner of a house at risk of bank foreclosures is actually able to sell the deed to the bank, but they will be able to continue living in their home. They will basically rent the home from the bank that was about to foreclose on them, and they will no longer be the owner of their house.

No doubt you can see why this is such an issue for so many. While the rent to own option encouraged people to move into the house that they would buy within the next few years, the own to rent option is basically the bank saying, “Sure, we own this house, but we’ll have pity on you and let you continue living in it.” The house that once belonged to the occupants is now owned by the bank, and they are living in a home that they now have to pay rent for.

The bank is claiming that this option will allow those that are suffering from economic hardship to be able to continue in their current homes, ensuring that they aren't evicted just because they are unable to pay the mortgage on their homes. The option offered by Bank of America is available to those that are more than 60 days behind on their mortgage payment, as well as for those that owe more on the mortgage of their home than they have in home equity.

This option has received mixed response from the public, though the majority of experts agree that this own to rent option is not the best choice for most. While it does give those with economic hardships the ability to continue living in their homes, it often means that they will continue to live beyond their means in a home that they were unable to afford in the first place. The bank has bailed them out, but they will continue to dig themselves deeper into financial holes.

On this topic, Andrew Goodwin of RealtyStore.com commented, “While this allows both lender and borrower to avoid foreclosure proceedings, it's sad to see people deprived from their home ownership dreams. We'd encourage banks to consider more of a lease option approach, where the now-tenant would have an option to buy his/her home back in two or three years through a balloon payment, essentially a second down payment."

How do I know if I have a good real estate agent?

Buying cheap homes can be easy or hard, depending on whether or not you have a good real estate agent who is working with you. In fact, your experience with regard to buying or selling a home rests a lot on the kind of quality of the realtor with whom you are dealing. A lot of people have asked themselves if their agent should be doing this or not. To settle this once and for all, just read on to find out if your realtor is behaving in a legitimate way or not.

First up is credibility. A good real estate agent will possess oodles of credibility, which is mainly measured by way of how many years experience he or she possesses in terms of showing and selling houses. Ideally, it is also recommended that the agent have experience in all sorts of real estate markets.

Next up are the right credentials. You can be assured that your realtor will perform better if he or she has any of the following letters after his name: SRES, CLHMS, ABR, CRS or GRI. A realtor with these credentials will usually provide a better service than one without.

Good communication—there is simply no substitute for it, and it is yet another hallmark of a good agent. Your agent should possess good communication, which includes returning your e-mails and your phone calls in a prompt and efficient manner.

If your agent has a lack of education, then that is problematic because it raises questions about his commitment to keeping himself or herself informed of all the trends in the real estate market. Beware this type of agent!

One way that your agent can ignore your needs is if he or she keeps showing you properties that are always beyond your means. Such an agent is not looking out for you, and you should part with him or her quickly.

Finally, an agent who does not work full-time is one to be avoided, too. An agent should not be working so little that he or she can’t give you full attention.

Houses for Rent in Cleveland TN

In the foothills of the Smoky Mountains, the city of Cleveland, Tennessee is located within easy driving distance of Chattanooga. While it’s fairly easy to find houses for rent in Cleveland TN, you may be wondering why you should consider going with a home in this area.

Cleveland makes a highly desirable relocation destination for those looking for many reasons. Those interested in houses for rent by owner will find that the city not only offers natural beauty, but excellent business opportunities, affordability and more.

The city has their own Economic Development Council that focuses on working on the economy’s diversity and financial growth. Recently, the city has been recognized nationally for successfully creating new jobs, preserving current jobs and keeping a strong economic base for development in the future. Various Fortune 500 companies are located in the city, including Honeywell, Duracell USA and Maytag.

Of course, the reasons to consider houses for rent in Cleveland TN go beyond just economic reasons. The city offers many recreational and shopping options to residents and visitors. Those who move to the area can enjoy the many recreation, water and park areas. A few of the recreational choices residents enjoy include biking, boating, fishing, rafting, golfing and more. Plenty of shopping is available, as well as excellent dining options.

The price of renting a home is also reasonable, which makes the area worthy of consideration. With low rental rates, business opportunities and a stable economy, choosing houses for rent in Cleveland TN is an excellent choice for couples, families and other homebuyers.

Why Young Families are Attracted by Rent to Own Homes in San Diego

San Diego offers many benefits that attract home buyers and renters of all ages and income levels. However, the area is especially attractive to young families. Many families are taking advantage of rent to own homes in San Diego for a variety of reasons.

Education is Important to Young Families

For young families that home children of school age, education is definitely important when they decide to find a rent to own apartment. Families want school systems that offer a great education, which they can find within the San Diego area. Public schools in San Diego have hired more teachers, lowering the ratio of children to teachers to below 20 to 1. Education is very important and families are offered many choices, with excellent private schools to consider, along with the public school systems.

Job Opportunities Offer Financial Security

Another reason young families are attracted by rent to own homes in San Diego is because of the job opportunities in the area that offer financial security. Parents are worried about providing for their children, this area has a job market that is growing, and it is predicted to continue its growth over the next 10 years. The economy is still solid in this area, making the city an excellent choice for families interested in relocating to an area that offers better financial stability.

Low Crime Rates

Most young families want to ensure they live in areas with low crime rates to keep their children safe. Once again, San Diego delivers. Crime rates have been falling in recent years, making this city one of the safest within California.

With a great educational system, job opportunities and low crime rates, it’s easy to see the attraction of rent to own homes in San Diego for young families. Families can enjoy a wonderful area that provides their children a great education in a safe environment while making sure they stay financially afloat.

Rent to Own Homes in Midland TX Offer Great Deals for Homebuyers

When you’re looking for a new home for your family, you definitely want to find a good deal. After all, the real estate market still hasn’t completely recovered and you want to make a wise investment. If you’re interested in relocating to the state of Texas, rent to own homes in Midland TX offer excellent deals to homebuyers today.

The median cost of homes in the Midland area is about $194,000. While that may seem a bit expensive, it’s important to note that home appreciation is up in this area. In many areas across the country, home values are dropping drastically. However, this isn’t a problem in Midland, which is why prices are a bit higher than other places. With homes appreciating more than 13% within the past year, investing in a home is an excellent option.

Going with houses for rent to own in Midland, Texas offers homebuyers the ability to lock in the current market prices on the home. A lease option contract allows you to rent the home for a specified period of time, making the final purchase when the lease period is up. Some of the money you pay will go towards the purchase price. Since home values seem to be rising right now, you can lock in today’s price on the home, which can save you a significant amount of money on rent to own homes in Midland TX.

While rent to own homes are a nontraditional method of purchasing a home, they do have much to offer. You can find a home for an excellent price, lock in that price and then work on getting your finances in order to make the purchase. When you’re ready to begin looking for options, the search engine at RealtyStore.com can offer a great resource.