The Pros And Cons Of The Housing Crisis
Ironically and perhaps the unrealized “silver lining” that could be taken advantage of in this situation was the devaluation of homes resulting from the housing bubble.
While devaluation was not advantageous to those who have been …show more content…
It is common knowledge that when one is investing in their own home, they have pride of ownership towards the care of their home. It is with this natural expectation concerning home ownership that sellers and banks should consider providing the option to rent-to-own. Usually, the monthly rent-to-own payment has a portion that is agreed upon to be set aside as a down payment at the end of the term to be applied toward a traditional mortgage. The idea, however, is open to any arrangement that may be reached in writing. This concept provides assurance to the seller that their investment in the property will not decline as they allow the buyer additional time to recover and repair their credit scores. Once buyers have improved their credit scores, they in turn would be able to convert their renttoown agreement into a traditional mortgage.
Requiring signed notarized rent-to-own agreements detailing all the provisions to be adhered to provides understanding and legal protection to both seller and buyer. …show more content…
Additionally, the seller would have to include an amount to be utilized towards a down payment for the prospective buyer. In turn, the prospective buyer has to fully read and understand a proposed rent-to-own agreement prior to signing, with confidence that he or she can live with.
Exploring various ideas for creating rent-to-own agreement terms may lend opportunities to those who otherwise would not have any other option but to rent or live with relatives. For example, where one may need a seven year agreement, another may only need a three year agreement before obtaining a traditional mortgage. Details in the agreements may vary depending on factors involved with the home. In some cases, homes may have been vandalized so perhaps repairs involved at the cost of the tenant may be put towards home equity build up. This arrangement may make the monthly payment a little more affordable to some, while doing double duty concerning time to make home repairs along with repairing one’s credit.
The whole idealization here is to take steps and move forward through the implementation of feasible rent-to-own transactions. This supplies benefits not only