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Buying or Selling a Home/Rent to Own a home from my parents
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Question
I would like to know if it is possible for a contract to be written up for me to either Rent to Own a home my parents own in Syracuse NY or write up a Land contract for it and how that would work. Any suggestions would be greatly appreciated. Thank YOU Angela
Hi Angela,
A Rent to own contract is possible, but not used very much in my area. I'll explain why. Most people wouldn't mind getting enough to pay what they owe monthly on the property, but most need the down payment to be large enough to buy their next property. That said, it is smarter for them to do what's called owner financing or owner "holds the mortgage". What this means is that you give them a substantial down payment, and make payments to them as if they were the bank. If you default on your payments the property will revert to them (and that includes any improvements you might have made), just like it would if you had used a bank for your mortgage. It offers more protection to the owner of the property.
In your case the property is owned by your parents. That is a big plus for you. If they don't need the down payment, and you have a bond of trust between you, then the simple thing to do would be to go to an attorney and have him set up an amortized schedule of payments for you to purchase the property from them. I definitely recommend talking to an Attorney in any case. Better to pay his fee now to be protected later!
Here's how it would work:
You would decide between you how much you would pay for the house.
You should contact a Realtor to get an-up-to date comparative market analysis done). Then go to the Atty, get the agreement drawn up and get the amortized payment schedule, and make your payments on time, month after month till the agreed on amount has been reached. Then have a mortgage paper burning party!
I hope that helps! Good luck!
Laurie
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Laurie Stephenson
Expertise
I can answer questions about Residential Real Estate in Upstate NY's Capital District area, from Albany to Lake George. I specialize in Saratoga Springs and the surrounding towns. I am a Buyers and Sellers Agent. Check out my website at www.lauriestephenson.com
Experience
Residential Buyers and Sellers Agent
Organizations
Greater Capital Association of Realtors, (GCAR)
New York State Association of Realtors,(NYSAR)
National Association of Realtors, (NAR)
Education/Credentials
Associate Broker
Awards and Honors
Million Dollar Club
Past/Present Clients
My goal is to make the process of buying, selling, or owning a home efficient, enjoyable and rewarding for you. See what my clients have said about my real estate services...
*Comments: Laurie was enthusiastic and supportive through the whole process. I would highly recommend her! JAC - Stillwater
*Comments: My wife and I recently purchased our home with Laurie Stephenson. This purchase was difficult because we were buying a home from 3000 miles away. Laurie worked with us for several months prior to the purchase. Then, when my wife and I arrived to look at homes, she helped us get right down to business.
Laurie's knowledge and expertise pertaining to the Saratoga community allowed my wife and I to find a house that was honestly, the exact home we were looking for. Laurie took our situation, our hopes and dreams, and helped us put them into perspective and find the home that was just right for our family. Laurie's dedication to our family was invaluable throughout the entire process and continues on past the closing of our home. My family and I appreciate everything that Laurie has done for us. We got the luck of the draw with Laurie, and couldn't have asked for a better real estate agent and friend.
Sincerely, Randal& Shanna Thorpe
*Comments: One of the most refreshing qualities about Laurie is she goes to great lengths before even showing a house to make sure her clients are qualified and she understands exactly what there looking for. Her unique ability to understand people and listen is why she's so successful. She puts her client's best interest first and assures they can buy and afford the house for years to come. As a Mortgage Broker responsible to the banks and the clients we have a perfect record and many happy homeowners.
Thank you Laurie!!!
Jim Teele
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