Advantages of selling your house Rent to Own in Norfolk, Chesapeake and Virginia Beach..
Do you need to sell a home with little or no equity in Norfolk, Chesapeake or Virginia Beach? If so, join the club you are one of thousand of homeowners that need to sell fast. Luckily for you there is the option of selling your house rent to own. Rent to own is a great way to make your negative equity work for you without going thru a short sale or foreclosure.
How does a Rent to Own work?
Glad you asked!
Its very simple. You as the homeowner would create your own purchase price, monthly payments, interest rate and down payment. It is very important that you keep the terms of your property consistent with the local market in the area. If you have negative equity in your house then you’d typically set the purchase price to be exactly what your loan balance is. Same goes for the monthly payments… you want your buyers monthly payments to be consistent to the rental market is. If your monthly mortgage payments are more than what the rental market is then you’d set your rent to own payments to be exactly what your payments are. Depending on the condition, asking price and monthly payments would determine how much you ask for interest and down payment upfront.
What kind of buyer am I marketing to?
In most cases a rent to own buyer is a family or individual that has the motivation to become a homeowner. They have the current employment, financial ability and rental history to maintain home ownership but they simply lack the credit score to get a loan from the bank. It is very important that you screen your rent to own buyer to your best ability to make sure that they will pay on time, take care of the property and be ready to exercise the option to buy within 2-3 years or less.
What happen after I get my Rent to Own buyer?
Once you have a qualified rent to own buyer and have collected the down payment it is now time to sit back and collect rent. Ultimately your goal is to sell your upside down house fast without taking a hit on your credit. Therefore you want to set the expectations with your rent to own buyer that they need to be working with a loan officer to get there credit up to par. The main goal is to build enough equity in the house so that once your rent to own buyer is qualified to get a loan the property will appraise.
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