Advice on Rent-to-Own?

SoCal78_IHB

SoCal78_IHB

New member
Can anyone give me some info to pass along to a friend? She lives in another state (Montana). She does not have a lot of money... is a single mom... and can only afford to rent. A friend of a friend offered her their home in a "rent-to-own" situation. I don't know all the details... and neither does she, yet. But it sounds like the owners have had the house for sale and haven't had any luck. So now they want to rent it out ... but I don't get the "own" part. I don't know if this means they transfer ownership once the house has been "paid" for so in other words they are essentially carrying the loan for the renter or if it's just a sham. Besides hiring an attorney (I really doubt she would because of her finances), what is some good advice I could pass along to her? Thanks in advance.
 
What your friend is considering is a land installment contract. They are a method of owner financing that has been around a long time. The article below describes the pluses and minuses from both perspectives.



<a href="http://www.frascona.com/resource/jag404ilc.htm">Pitfalls of Land Installment Contracts</a>
 
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