The Dangers of Rent-to-Own Agreements
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- Опубліковано 3 сер 2016
- For many people, rent-to-own sounds like a simple and practical agreement-live in the house as a tenant, pay rent each month, and have the rent count toward the purchase of the property. Unfortunately, these transactions are anything but simple. The paperwork is often drawn up incorrectly, is incomplete, or is simply contradictory to what the buyer and seller verbally agreed upon. A traditional home purchase involves at least one realtor, a title insurance company, a mortgage company, and a settlement company; it is a professionalized industry that takes ordinary purchasers by the hand and leads them through the complicated process. Rent-to-own transactions present a seemingly viable option for people who have been shut out of this traditional lending market-those with low-income or poor credit, or who simply can’t save up the necessary funds to go to closing. These people are left to desperately circumvent the system, and they come across unscrupulous sellers, often career landlords who operate their own business and prepare their own documents. The power imbalance is palpable.
This video, which features Community Legal Services attorney Jennifer Schultz and her client, Wilmarie, tells the story of one rent-to-own agreement gone wrong, and educates people on the dangers of rent to own agreements.
To learn more about rent-to-own agreements and how you may be able to get legal help, visit clsphila.org/get-help/rent-own.
Funding for this video was provided by the Dolfinger-McMahon Foundation
Why don't they teach us that in high school, why did I take french if i'm never going to paris!!
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 is just a scam to make short term renters long term rental and to pay for their own maintenance
Wilmarie, just change your first name
so basically get my credit together save some money the buy the traditional way.🤔
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.
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.
Best to get a real estate attorney to assist you through the buying process just as with a regular home purchase!
The best thing to do is BUILD YOUR OWN 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.
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.
Good to see that she ended up with a proper lease option / rent to own.
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 met a ex -partners grandfather who bragged on making $$$ a small fortune on rent to own
Knowledge is power. This is great.
Thank you for making this video! Great info! Now we can protect yourself from all the corruption and greed!
Jennifer is amazing I usual listen to her advice on Satellite Radio. She really cares for people and works to inform them. Awesome women
I hope her and her babies got their home. I am so happy I found this video.
So Glad there was help out there for you! Hope everything worked out 🙏❣️🙋
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.