Job loss, marital breakup, and people tired of renting who have the ability to buy a home but who do not currently qualify (usually for credit reasons) are increasingly going the RTO route. Even some existing homeowners have turned to this option to avoid losing their homes when no other options were available.
Rent to Own is a viable short term solution that assists people to get into home ownership and now, to ‘retain’ the family home versus having to sell and rent, or lose it to the bank. They want to keep their kids in place without the heartache and disruption, embarrassment and shame of having to move into an apartment. These are usually hard working people who have suffered job loss, divorce etc., who know they will bounce back, and who have good earnings potential. In the meantime credit has suffered and they no longer qualify for an institutional mortgage, and quite often even a private mortgage is too risky as well.
In fact the last three RTO’s we have done have all been to existing homeowners in danger of losing their homes, and this is a growing trend. Our program is designed to make clients ‘successful’ and to give them financial ‘relief’. It is not just an ‘Option’ (like most RTO programs) that the client may or may not pick up because our clients legally repurchase their home as soon as it is sold to an investor, and so as long as they meet their obligations as set out in the RTO agreement, and they follow our advice and coaching to improve their credit ratings, they will regain title at the ‘completion’ of the agreement when they once again qualify for a prime institutional mortgage. This is a Win/Win because they continue to live in the matrimonial home, can improve it etc., just as if nothing has changed.
Typically, with the funds from the sale, RTO clients can pay off all debts, eliminating financial stress, begin to rebuilt savings and credit during the term of the RTO agreement. Sometimes there are sufficient funds available to provide money to buy a (much needed) newer vehicle or have as a financial cushion going forward.
This not well known and often misunderstood solution is available from us ‘The Price Team’ Dominion Lending Centres. For further details please call and ask for Ron.