Mistakes to Avoid When Selecting Rent to Own Homes in MN

There are a number of positive reasons to look for and find a bargain home. It is still important to be aware of mistakes to avoid when selecting rent to own homes in MN or any area, for that matter. Since you are renting the house prior to qualifying for a mortgage and actual purchase, you have less protection against certain actions.

It is easy to get wrapped up in the opportunity of working towards your own property. Take a careful look at what you agree to in the contract. Whether it is a newer or older home that has caught your eye, be particularly careful about who is paying for improvements and repairs.

If your rent to own home agreement makes you responsible for those items, it is very important to have the property and structure checked before signing. Go down to City Hall and find out if there are any pending improvements that affect the house or the land. New sewer hook-ups are expensive, but if you have agreed to be responsible for the debt, it is yours.

Checks with the tax assessor to be certain taxes are current and there are no liens against the property. Be sure any of the rent to own homes in MN you are hoping to acquire are not subject to foreclosure proceedings. There is a measure of trust when you deal with an owner. If you feel something is being withheld that you should know, investigate thoroughly to protect your own interests.

While checking with the tax assessor, verify the name of the property owner or owners. If you are dealing with a different party, qualify their right to offer an agreement. Avoid falling for a scam where you put up earnest money and make payments to a person that has merely placed you in a home that has already been foreclosed or been abandoned.

Determine responsibility for homeowner association (HOA) fees. Depending on where you live, these can be $200 or more a month. The HOA can start foreclosure action if payments fall behind. Verify that the owner is in good standing and that there are no provisions against renters in the regulations.

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