Can Rent To Own You Make Sense?

Can Rent To Own You Make Sense?

Can Rent To Own You Make Sense?

Real estate market was not so Dire Straits since the Great Depression. Years of easy money through aggressive lending policies, coupled with the mistaken belief that real estate values will always go up, caused the housing bubble. Millions of people refinancing their homes with borrowed the maximum amount allowed and / or to take (and cost) of home equity lines of credit (HELOC) loans. As the economy weakened and we entered into a recession, many people lost their jobs and could not make their monthly house payments.

Cyclone recession started:

1st accredited

2nd cheap homes come on the market (banks are unloading foreclosed homes)

3rd Recession deepens, more and more people are losing their jobs

4th more foreclosures

5th more cheap homes

As the crisis grew, banks have had to change their lending policies. They can no longer afford to offer easy money and too aggressive for a mortgage. Then, a typical knee jerk reaction occurred. They stopped lending! But banks will continue to be more cheap houses in the housing market, because of crowding-out rate has increased. As the home increased supply and the number of people able to buy homes fell, the total value of homes has decreased. Suddenly, those who have leveraged their home, they discovered the largest owe more than their home is worth now. In addition, banks have ceased HELOCs, people continue to lose their jobs, and the cyclone has worsened.

Today, it seems we are slowly recovering. People with cash or with high credit ratings to buy in today's environment. Banks loan, but policies and terms are more stringent. However, the average value of almost all homes have declined significantly. Millions of people want to sell their homes, but they can not get a fair price. Millions of people want to buy a home, but they can not get a mortgage.

One factor that probably will do most of the time to resolve this crisis. It took a long time to get into this mess, and it will take time to crawl out of it. But what if you do not have time to wait? Whether you are a buyer or seller, you should consider a bike with his approach, because it will give you time.

Most lease proposals for the use of their time in one year, but this is negotiable. If you are a buyer can not obtain a loan today, to negotiate for a longer period of time, say within three years. If you are a seller can not get a fair price for your home, you can lock a fair price for a specified future date, say three years.

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