When the housing market collapsed, almost everyone anticipated that the situation was going to get better quickly. Even so, it does not seem that it's getting any less difficult to purchase and sell a house. Buyers with less than perfect credit are struggling because FHA rules are not showing any signs of loosening and the subprime market doesn't seem to be making a comeback. The simple truth is that the days where virtually anybody could purchase a home in the traditional manner are behind us. For this reason, more people are looking at other techniques they can use to help them accomplish their goal of home ownership. One method that is gaining popularity is lease to own homes.
In case a rent to own home is something which you think may work for you, it is very important that you've got the proper expectations. If you think that you'll be able to take advantage of all the opportunities in the market, you are likely to be let down. Large discounts in this market are reserved for those who can get the property owner cash today. If you do not have cash or the ability to get cash in the form of a mortgage, you cannot expect to pay below fair market value. Likewise, usually it won't be possible to get a property that was already foreclosed on as a lease to own home. Lenders are not enthusiastic about being a property manager!
Even though an individual won't likely find a home for under its value, you should not expect to pay more than the home is worth. What you have to do is find a enthusiastic seller that wants to get a fair price for their home and has the ability to wait a year or two to get their cash. There is a big difference in working with a motivated seller and a distressed seller. A motivated seller will be willing to work with you on terms. While a distressed seller will too, if their mortgage is behind they may not have the ability to get it caught up. And, even if they intend to get the loan current, unless they can do this in a single lump sum, the bank may not take their payment. What this means to you is that you could give them the up front option fee and be making all of your payments on time only to get a letter in the mail one day notifiying you that the home has been foreclosed on and that you need to move.
To find the best rent to own deals, a person ought to find a house seller that has either moved or wish to move but has been making the payments for the home. This is the best way to create a win-win for all.