No Credit Check Rent-To-Own (RTO) Home Ownership; Short Sale or Traditional Mortgage - So What's The Difference Anyway?
With the first one (RTO), you win; the second (Short Sale) you break even, win or lose depending on with whom you ask the question and the other (Traditional Mortgage) - you're always taken to the cleaners or should we say bank! Many buy cars "cash only" while others finance at $600 or more per month only to watch insurance and gas skyrocket! Some buy 5000 sq.ft. homes at $500,000 while others buy similar homes at $189,000. Which person are you?
You invested $300k in mutual funds and rode the wave to the tune of 100s of 1,000s of dollars and woke up one morning to find that - It's All Gone! Literally Overnight! That's $600k going up in smoke and I didn't say it as in Cheech and Chong.
That same $300k in a home in 2003 in four years was worth as much as $675k in 2005 and you were smart because you sold that home at $650k and covered the initial $300k or better yet, you purchased a newer home for $500k in 2008 and now only owe $200k on your new home. You are a superstar, because not only did you get out, you then took the remaining difference of $50k and bought Gold and Silver (Precious Metals). You hit the daily double or better yet, Trifecta.
Others invested $350k in a new home in 2003; watched it increase in value to $475k in 2005; sat around the table talking about the possibility of the bubble bursting; still took out a second mortgage to pay down their bad debt and failed to take other more prudent actions. Why study the past? To better predict the outcomes of the future. So now your $300k home that was worth up to $500k is now worth $285k or less and you are upside down in your mortgage, because you took out that second mortgage of $60k-$120k. You owe $350k-$400k. Did monopoly teach us anything? Buy and sale real estate to create wealth! A slow market always follows a hot market. Did you really think that home values would continue to climb with no end in sight. That's the business model the banks used - really!
Never forget that the financial giants on wall street and their cronies wanted you to believe that the way to financial wealth was through the stock market and their slick crafted risk based insurance; mutual funds and disastrous real estate securities, which we have all just found out about after the fact. Well, we all know that they, basically almost have destroyed our sacred safe haven - our homes and the right to homeownership access for all hard working citizens! Many even worked for 20 years and lost 30%; over half or all of their IRA savings!
No Credit Check Homeownership or Rent-To-Own (RTO) - Your way out!
We hear of homeowners who have stopped paying their inflated mortgages. They save 1,000s over a span of a year while remaining in your home and if they time the expiration of Federal Loan Modification Programs just right even more over a span of two years plus add in your additional funds saved from paying zero property taxes and zero homeowners insurance as the bank will pick up those tabs and add them to the back of the mortgage note. They then use the money, approximately $90k or more in some cases as a down payment on a RTO or foreclosure to buy a home outright. We know that in many cities like San Antonio Texas, you can now find 3,000 to 4,000 square feet homes priced at $166K. We recently found an $85k; 2,600 Sq.Ft. home with over an acre of land in Jacksonville, Florida - so go find your own real estate meltdown™. They are everywhere!
Cancel Christmas and my Birthday! I want to live mortgage free! Now your living mortgage free with funds available for investment and saving purposes. You can even start your own business, which is our claim to fame. Then at the end of the two years, you could then modify your old loan to a note that makes your old home an attractive rental property. Yes, I did say that you can keep that property. Oh, we forgot to mention that after you move out you could also rent out that home for $1500 to $1,800 per month or more until the loan is modified, because the second you apply for a HAMP loan modification the foreclosure process is halted until the review process is completed. It really is like playing monopoly and the stakes are high.
Some homeowners are modifying their loans and renting out one or more of their homes - they then use the monthly funds saved and earned to purchase numerous income/positive cash flow producing rental properties. Can you say tax liens?
Consult an attorney or licensed real estate professional before completing any real estate transaction!