The Foreclosure Of The Last Couple Years

Some people might think that renting and owning are pretty similar, but they do have a lot of differences that people tend not to think about. In fact most people don’t do a lot of research on the differences and similarities. Renting a place to live is a wiser choice and is cheaper in the long run, but having a place that you own has a lot of advantages to. Some differences that people don’t think about are maintenance, utilities, and restrictions.

In the early years of a mortgage, the majority of the monthly mortgage payment goes to paying the interest. Over time an increasing amount goes to reducing the principal. As the principal is reduced, the equity will increase on the owners home. Owners Gain tax advantages by deducting mortgage interest and property taxes from their federal income tax form. They should Stabilize their payments with a fixed interest rate on their home loan. They should Have a secure place for their family to live. A home provides a permanent place where a family can live and grow, and the owners can decorate or expand a house the way they would like to create their dream home. There is always a negative compared to a positive. A home could lose value. There is no guarantee that a home will increase in value. It could decrease in value especially in a rocky housing market. Another benefit renters have over homeowners is that they do not have to pay property taxes. This can be a

I often used to watch a show called “Extreme Makeover” where a team of builders would come to a neighborhood, build a need worthy family a beautiful new home, and then just give it to them. “Wow! What a lucky family,” I would say. “How fortunate.” However, as time went by, that same family would be in the news again. Why? The house was in foreclosure. The people had gone to the bank and taken out a mortgage against the home, then spent all the money they got for it on other things.

Renting to own is a viable option for many financially-stricken Americans by eliminating the high costs of down-payments. Renting to own allows the seller to lock in a sale price while renting to another party, usually a small amount higher than a mortgage, but it allows the buyer to rent the house under contract until ready to purchase. The process keeps the seller from paying multiple mortgages without income, and it benefits the buyer by giving a viable alternative for home ownership instead of traditional

The American dream is to own your own home. For some this could be an impossible task to tackle. For others becoming a home owner is as easy as 123. Then there is the select few who prefer to rent over becoming a home owner. If you were to think of the differences between the two options, you might change your mind. Whether you prefer to be a home owner versus a renter, or vice versa, taking a look at the other option might change your mind. Many people would believe that owning your own home is incomparable to renting; ultimately that decision could be determined by an individual

Renting to own can be a valuable solution to the boomerang buyer with tainted credit. The benefits far outweigh the other options for these buyers. During a 3 to 5 year period of renting a home, an individual’s credit can improve and open up possibilities of homeownership. This allows the potential homeowner time to prove they are reliable. Since a foreclosure stays on your credit report for 7 years the person is going to need a place to stay. With a “foreclosure” attached to their name they will not be able to hop into another house right away. This is the perfect window for someone to get his or her feet back under themselves while chipping away at owning another home.

Being a landlord is risky – just because you have your house rented to seemingly great people (in terms of credit) doesn’t mean they won’t screw you the first chance they get. Circumstances change, jobs get lost or hours reduced, and people find themselves unable to pay the rent. All of the sudden landlords find themselves without much recourse in terms of collecting rent and evicting tenants. They also run the risk of significant damage to their investment and no way to recover their losses. Small claims court doesn’t even begin to cover the physical damage someone can inflict upon a

First of all, the rent to own option is a superb option that allows the renters to apply the monthly rent to the purchase of the house. Renting to own, otherwise known as a lease-option, allow those people that are not in the

The foreclosure/housing market crash several years ago affected a vast amount of families across the country. Unfortunately, my family was also affected. Thankfully, my parents have not gone through foreclosure yet, but we are all stuck in a house because we are “underwater” (owe more than it is worth). This crisis directly and indirectly affected so many, but thankfully we are all starting to bounce back.

The current housing market while not quite as oversupplied as during 2007-2009 is still leaning in that direction in some parts of the country. This means that there are those who have mortgages on homes that they would like to keep but are overextended on. These homeowners would be likely candidates for the “Boomerang Buyers” to approach and suggest the idea of a rent-to-own arrangement. Research needs to be done to determine if the

Some prefer renting to buying because they believe that the renting might seem to cost less than buying a house. The tenants can possess a stable shelter without a high-cost per month, which provide the benefit to the renters within 10 years (Andriotis, 2014, p.4). Renting a

“Shit happens” is probably what most of these foreclosed homeowners hear after they were forced to leave their comfy home. Even though the economy is unpredictable, not a lot of the victims are satiable by such a vague expression that has caused them to lose their property. It’s a harsh comment, but the economy has turned into something that we have little influence over. One of the worst feelings is having minimal control over the consequences and outcome. Some people are afraid to make the same home-buying decision again as a result, because what’s stopping the economy from taking another shit on them again? The answer is probably nothing, but what are some actions these homeowners can take to ease into settling down in a home again? Foreclosure victims can try to improve their credit score and it could get them that approved private loan in return if needed. Saving money is also a general option for those that tend to spend a lot on luxury retail goods. Another option can be utilizing the rent-to-own option to have that ‘homey’ feeling as soon as possible. Some people can also test their patience and attempt to wait it out until the economy exits the lavatory.

The rent-to-own option is one that very desirable for potential home buyers as well as sellers. They are able to live in the home that they desire to own and all rent payments that are made are put towards to the future mortgage similar to a buying a car. The future buyers pay a certain amount each month to live in the house, and at the end of a set period -generally within three years- they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually purchase the home. Both future buyer and seller need to be very clear about the

There are many benefits to the Rent-to-Own option, including living in and taking care of the home prior to purchase. While paying each month toward the lease purchase, the buyer can continue to improve credit history and begin to build equity in the home. The Rent-to-Own option is a great way to get into a specific neighborhood with the opportunity to purchase the home without the penalty of a large down payment or previous bad credit history. If the buyer has recently regained employment this option allows further building of employment history. While there aredisadvantages to every option, specific, and clear communication can resolve many issues up front. The major consideration in the Rent-to-Own option is the loss of rent credits and the option fee toward the purchase if the tenant determines that the home is not what they wanted. In addition, if the market changes and the fixed price of the home is higher than the market demand the tenant is contractually obligated to the agreed upon price. So as a

When people buy a home they have to pay extra amounts that are not covered by the actual price of the home. These extra expenses include down payments and closing costs. With the rent-to-own option buyers will only pay a security rental deposit and also have the choice of paying an option deposit as well.