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	<title>Money Skoop &#187; rent to own homes</title>
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		<title>Three Reasons Most People do not Succeed with a Rent to Own Home</title>
		<link>http://www.moneyskoop.com/three-reasons-most-people-do-not-succeed-with-a-rent-to-own-home/</link>
		<comments>http://www.moneyskoop.com/three-reasons-most-people-do-not-succeed-with-a-rent-to-own-home/#comments</comments>
		<pubDate>Mon, 25 Jan 2010 19:00:28 +0000</pubDate>
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				<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[houses for rent to own]]></category>
		<category><![CDATA[rent to own home]]></category>
		<category><![CDATA[rent to own homes]]></category>
		<category><![CDATA[rent to own house]]></category>
		<category><![CDATA[rent to own houses]]></category>
		<category><![CDATA[Rent-to-own]]></category>

		<guid isPermaLink="false">http://www.moneyskoop.com/?p=125</guid>
		<description><![CDATA[If you do not presently qualify for a home loan, you may have considered getting a rent to own home.  This can be a good choice, but only if you are willing to do what it takes to make sure that you are successful. You should understand that most people who get into a rent [...]]]></description>
			<content:encoded><![CDATA[<p>If you do not presently qualify for a home loan, you may have considered getting a <a href="http://www.financethedream.com">rent to own home</a>.  This can be a good choice, but only if you are willing to do what it takes to make sure that you are successful.  You should understand that most people who get into a rent to own situation never actually purchase the home.</p>
<p>Most of the time, the reason for this is one of three things:<span id="more-125"></span></p>
<ol>
<li>They      do not do what it takes to qualify for a mortgage.  Credit repair takes time.  This means that you need to start      working on it as soon as you sign a contract.  You can either hire a<a href="http://www.financethedream.com/our-program/credit-repair"> credit restoration      service</a> or repair your own credit.</li>
<li>They      fail to negotiate the contract so that they have the time they need to      repair their credit or document their income.  Most rent to own contracts are for a      year or less.  The reality is that      it is going to take most people who do not qualify for a mortgage at least      two years to get their affairs in order.       And, if you have had a recent foreclosure, you should count on it      taking you at least three years.</li>
<li>The      purchase price is set to high.       There are a group of investors called lease option investors.  They buy homes that they plan to hold      long term, or they negotiate long term lease options with distressed      sellers.  They then seek out people      with bad credit and offer these homes to them with terms that will never      allow people to actually purchase them.       So, despite the fact that the tenant has improved their credit and      can get a mortgage, no lender would lend to them because the home is not      worth the asking price.</li>
</ol>
<p>By avoiding these three things, you can greatly increase the odds of your success.</p>
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