Benefits of Rent to Buy Mortgage

One of the most fulfilling achievements a person can have is to have a house that he can call his own. Who wants to live in a place with no certainty and who wants to pay for rent his entire lifetime? A house that you can call your own, arrange and remodel the construction every now and then to suit your preference is rather more appealing. That’s why there are rent to buy mortgage scheme that are available nowadays. Being a council tenant for quite some time give you the right to buy it at a lower price. This council right serves as a chance for your to be the owner of the house and fully benefit from the conveniences that you have been seeing from a distance for so long. Take note, however, that the discount you will avail in rent to buy mortgage is based on the number of years that you have lived in the house. The bigger the discount if you have stayed there for longer years. In the event that you decide to avail the rent to buy mortgage, there are additional benefits that you can take advantage of, like easy, affordable and flexible repayment terms. Council right gives tenant a chance to buy the house in a constructive manner so a bad credit is not really an issue. The only big distinction in rent to buy mortgage from the usual rental agreement is that, a part of your money spent every month goes to your acquiring the house in the future. This gives you the chance to own a house without you having to spend so much on down payments. In this way, this gives you more allowance to spend the money on renovations, thus, adding value to the property if you are thinking of selling it in the future. But if you prefer to buy another and not the place you are renting, for example those property that is near foreclosure yet you don’t have enough money for purchase, you should not fret. As you have noticed, there are numerous pre-foreclosure houses with mortgages too. This is a huge slice that is still unexploited in the mortgage note industry. It is feasible to own a mortgage note on a default property if you are interested with purchasing. This form of real estate investment needs you to personally contact the owner. So once the owner agreed to sell the property, you have him sign the contract; notwithstanding that you, are going to procure the note on their mortgage in their behalf. This signing of contract gives you the right ot hold the property in your possession while processing the papers in the bank and will prevent the homeowners from turning their back and sell it to another buyer. The moment you acquire the note, the contract turns immaterial. Upon getting the mortgage note from the bank, you have the preference on what to do with the property. You can either obtain a “Deed in Lieu of the Foreclosure” or you can force them to leave the house. The “Deed in Lieu of Foreclosure” makes the homeowner hand you the property deed in the event that they cannot make payments. This means that the homeowner can move out without having a foreclosure mark on their name because the property deed is already in your possession.

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