At HousingList we believe home-ownership should be accessible to everyone. We work to spread awareness around alternative, non-traditional routes to home-ownership such as rent-to-own and HUD properties. These alternative paths to owning a home can help people who don't have enough funds saved for today's rising down-payments, people who need to improve their credit scores, or any number of factors that prevent today's buyers from the dream of homeownership.
Determine whether you're the type of person who can easily take advantage of a seller's misfortune under these circumstances and/or put a family out on the street. Oh, critics will argue it's just business and sellers deserve what they get, even if it's five cents on the dollar. Others will feign compassion and trick themselves into believing they are "helping" the homeowners avoid further embarrassment, but deep inside yourself, you know that's not true.
Once you fully understand all the terms of the rent-to-own agreement -- and have had an attorney look it over and provide feedback -- it’s time to finalize the deal. Of course, signatures from both parties will be required at this time, as well as upfront payments such as the agreed-upon “option fee,” the monetary consideration that is necessary to make the rent-to-own contract binding.

There are two modes of foreclosure in the Philippines. A mortgagee may foreclose either judicially or extrajudicially, as governed by Rule 68 of the 1997 Revised Rules of Civil Procedure and Act. No. 3135, respectively. A judicial foreclosure is done by filing a complaint in the Regional Trial Court of the place where the property is located.[46] The judge renders judgment, ordering the mortgagor to pay the debt within a period of 90–120 days. If the debt is not paid within the said period, a foreclosure sale satisfies the judgment.[47] In an extrajudicial foreclosure, the mortgagee need not initiate an action in court but may simply file an application before the Clerk of Court to secure attendance of the Sheriff who conducts the public sale.[48] This is done pursuant to a power of sale. Note that these two modes specifically apply to real estate mortgages. Foreclosure of chattel mortgages (mortgage of movable property) are governed by Sec. 14 of Act No. 1506, which gives the mortgagee the right to sell the chattel at a public sale. It has also been held that as regards chattel mortgages, the law does not prohibit that the foreclosure sale be done privately if it is agreed upon by the parties.[49]
A rent-to-own agreement can be an excellent option if you’re an aspiring homeowner but aren’t quite ready, financially speaking. These agreements give you the chance to get your finances in order, improve your credit score and save money for a down payment while “locking in” the house you’d like to own. If the option money and/or a percentage of the rent goes toward the purchase price – which they often do – you also get to build some equity.

The mortgagor may be required to pay for Private Mortgage Insurance, or PMI, for as long as the principal of his or her primary mortgage is above 80% of the value of his or her property. In most situations, insurance requirements guarantee that the lender gets back some pre-defined proportion of the loan value, either from foreclosure auction proceeds or from PMI or a combination of those.
Watch out for lease-purchase contracts. With these, you could be legally obligated to buy the home at the end of the lease – whether you can afford to or not. To have the option to buy without the obligation, it needs to be a lease-option contract. Because legalese can be challenging to decipher, it’s always a good idea to review the contract with a qualified real estate attorney before signing anything, so you know your rights and exactly what you’re getting into.
"Strict foreclosure" available in some states is an equitable right of the foreclosure sale purchaser. The purchaser must petition a court for a decree that cancels any junior lien holder's rights to the senior debt. If the junior lien holder fails to object within the judicially established time frame, his lien is canceled and the purchaser's title is cleared. This effect is the same as the strict foreclosure that occurred in English common law of equity as a response to the development of the equity of redemption.

Rent to own housing is a popular choice for home buyers who may not qualify for a traditional mortgage, or lack the funds needed for a large down payment the lenders require. Rent to own properties help to overcome these situations for those who are ready to commit to a purchase. Buying a rent to own home can provide an easier approach to purchasing a home because it starts with a familiar lease agreement. Buyers of rent to own homes will rent, or lease, the home for a designated period of time. The great benefit for renter-buyers is that over time, a portion of the monthly rent payments are applied toward the ultimate purchase of the home. Plus, the final purchase price is determined up front in a lease option agreement, so there is no risk that the purchase price will rise later.


As per the foreclosure data report of RealtyTrac for January 2014, 1 in every 1,058 homes in U.S received a foreclosure filing. This figure falls in the higher spectrum of foreclosure frequency. As of August 2014, the foreclosure rate was 33.7%, 1.7% up from the last year. The rise in foreclosure activity has been most significant in New York and New Jersey, the two most densely populated areas in U.S. Closely following them is Florida.[35]

Having a brand-new house built requires you to shell large sums to cover for contractor payments, purchasing materials and many other things. Buying a house without renting also entails paying a huge down payment. If shelling our money for a brand-new house or giving down payment are not options with your limited budget, rent to own might just be fit for your income.
A foreclosure, as in the actual act of a lender seizing a property, is typically the final step after a lengthy pre-foreclosure process, which can include several alternatives to foreclosure including many that can mediate a foreclosure's negative consequences for both the buyer and the seller. As with foreclosures, states have their own laws to handle this process.
As you know, perfect timing – not just "location, location, location" – is critical when it comes to purchasing a new home and/or investment property at the right (lowest possible) price. That's because competition drives prices up. At Foreclosure.com, we target low-priced distressed deals – bank-owned homes, government foreclosures (Fannie Mae, Freddie Mac, HUD, etc.) preforeclosure listings, real estate owned (REO) properties and foreclosure auctions, among others – and pass them (and huge savings) onto smart homebuyers (that's you!).
If you think this is just like renting, you are wrong. The problem with renting is you are paying a monthly fee without having anything to show for it after the fact. Imagine living in that place for years and years! You are potentially paying thousands of dollars for the years to come. With rent to own homes, your money goes towards ownership. Meaning, it is just like renting but working towards actually owning the property yourself instead of throwing your hard earned money down the drain.
Chinese law and mortgage practices have progressed with safeguards to prevent foreclosures as much as possible. These include mandatory secondary security, rescission (Chinese Contract Law), and maintaining accounts at the lending bank to cover any defaults without prior notice to the borrower.[43] A mortgagee may sue on a note without foreclosing, obtain a general judgment, and collect that judgment against other property of the mortgagor, without foreclosing. When all other avenues have failed a lender may seek a judgement of foreclosure. Under the "Civil Procedure Law", foreclosures should be finalized in a six-month time frame but this is dependent on several things including if the mortgager applies to the court for execution of the judgment.[44] Mortgages are formally foreclosed at auction by a licensed auction specialist.[45]
This will ensure that you are not getting into a contract to purchase a home that you can’t afford. It’s important to give yourself a decent head start on the mortgage loan application process to see where you stand, as well as give yourself time to repair and/or fix any credit-related issues that might prevent you from obtaining a home loan. That’s because you need to be ready with an approved mortgage loan on the date specified in the rent-to-own contract.
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