Wednesday, 20 February 2013

Cant get finance and rent-to-own period is finished

At, we help people who wish to own a home but cannot buy the traditional way since they cannot qualify for a normal bank loan. The 2 main ways to consider owning a home today is rent-to-own or no-bank home/vendor finance.

I strongly suggest reading about those 2 ways and deciding whether it the right option for you.

Getting back to the main topic of this post: What happens if you are on a rent-to-own and your trying period has run out but you still cannot get finance?

Firstly, try talking to the owner to set up an extension period. At homebucket, we are usually able to extend a further 6-months or a year or so without any problems. This tends to be sufficient time to sort out finances. If this is still not possible and you really wish to own the home, you may wish to consider switching your purchase to an instalment contract (also known as vendor finance). In this way, you get an 'equitable title' and the right to demand the 'legal title' upon payment of the full purchase price after the final instalment payment has been made. With the 'equitable title', you benefit from any increase in value between the date of the agreement and final delivery of the deed of trust once the balance is paid in full.

Don't give up on your future and your dreams

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