pre foreclosure listings
Are those rent to own ads on craigslist legitimate?
I’ve been searching for rentals in the Bay Area Craigslist postings and have come across multiple listing for 2-3 bedroom homes for a very low monthly rental. The ad states “Rent to Own, take over payments program offering Pre-forclosures, Foreclosures, FSBO’s and Auctions” I don’t understand it and don’t want to be taken advantage of so can anyone shed some light on the legitimacy of these listings?
It looks like they’re trying to pull a fast one one someone. I’m not sure exactly what the game is. Maybe it’s to get someone in a rent to own situation, which greatly benefits a seller and is very risky for a buyer/renter.
The first red flag is the take over payments claim. You can’t take over payments on someone’s mortgage in order to buy their house. You have to get a new mortgage in your name that pays off the seller’s mortgage. Title then transfers to you and you are the new owner. The only thing that you might possibly be doing is buying the property with seller financing (they hold the first mortgage). But, they might be trying to get you into a situation where you’re paying the seller’s mortgage for them and they never lose actual ownership of the property (some kind of scam).
Rent to own is where you rent a place from the owner for significantly more than it should rent for each month and the excess is applied toward a down payment. You usually have a certain time period where you must either buy the property or lose a lot of that accumulated money. Rent to own is good for a buyer who doesn’t have the cash for a down payment and/or he must delay buying, because he has to repair his credit before qualifying for a loan. The buyer can also lock in the price of the property in advance. But, there is the risk of losing that extra money if the deal falls through.
Rent to own is good for a seller, because they get to charge more for the rental. And, historically speaking, most rent to own arrangements don’t end up with the renter buying the property. And, the agreement is usually one where the majority of the money that would have been applied to the purchase does not get refunded to the renter (the owner keeps it).
The renter must also continuously rent the property during what can be a pretty long term (a few years) for the purchase option to be available. If the renter has to move for some reason, the owner again pockets most, if not all, of the down payment money.
pre foreclosure listings
How Do You Obtain Free Pre-Foreclosure Listings?
Many short sale investors normally instigate their deals by getting in touch with the homeowners in pre-foreclosure. Yet, most new investors do not know how to find pre-foreclosures so as to make contact.
Hector Milla Editor of the “Free Home Foreclosure Listings” website — http://www.FreeHomeForeclosureListings.net — pointed out;
“… Once you discern how to obtain these homeowners, you will be astounded to know that very few investors work in foreclosure properties. When a homeowner’s bank documents foreclosure papers, the proprietor is informed with a notice of default or list pen dens. Pre-foreclosures are easy to find but it takes a little research to be able to get the right pre-foreclosure information …”
Easy tips to help you find free Pre-foreclosure listings
These are a number of essential methods you can use to find pre-foreclosures.
Searching public records
Going through the County Recorder’s Office is a free way of obtaining pre-foreclosure information. When you search through the NOD or the List Pendent records you are likely to find recently posted properties that have not reached most online foreclosure data sources.
Pre-foreclosure online search
Online searches are quit easy than looking for pre-foreclosure information in the Recorder’s Office.
Usually you will have to use an online listing service. There are both international and local pre-foreclosure listing services that are available and give property information. Several companies provide great information including their personal details, amount of loan owed, and extra loans outstanding, while other will even give contact telephone numbers.
Searching Local Newspapers
You can easily find notices of trustee sale in the business journals and local papers. You can also use additional sources such as finding pre-foreclosures through the government agencies or through asset managers. There are other ways you can use to obtain free pre-foreclosure data.
“… You can subscribe to a free pre-foreclosure listing check, either as a news letter using the postal mail, online or sent through e-mail.
You can also go through the local papers regularly as many places publish pre-foreclosure information in the classified section. If all the avenues fail search other properties using other means that can help you find the best pre-foreclosure information. More information on pre-foreclosure data is obtained at pre-foreclosure websites …” H.Milla added.
Further information and resources to get free home foreclosure listings by visiting http://www.BestFreeForeclosureListings.com
Source: http://www.foreclosurelistingsfree.biz
About the Author
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
When a home is in pre-foreclosure and the option to ‘take over’, what does that mean?
Im looking to rent but have seen lots of ads on craigslist that say take over payments,rent to own, property is in preforeclosure save owners credit etc and they charge a fee for the listings.Im wondering is this for real and legal, Can you just go in and get a house as easy as it sounds what is the downside from doing this?
Those are scams, it is not possible to take over another persons mortgage.
You can pay their mortgage, but ownership will not be conveyed, nor the tax credit for the payments.
Foreclosed Homes
