Landlord's A Dick

[jeffopentax]

This is a little bit of venting, and a little bit of inquiry. The short version is my landlord is a dick, and is essentially hanging my family and I high and dry. We've been living at our current house for nearly 4 years, with the agreement (though not in writing) that we would save up some cash, then work out a rent to own agreement. A couple days ago we got an email saying he (landlord) is selling the house, so we're out when our lease is up this july 1st. The reason, at least in my mind, is unreal. Anyway, we're in a tough spot. Having two young children makes this especially difficult. I know at least a few people here are in the real estate game. My wife and I would like to rent to own a home (coincidentally we just came into a sum of money), and have applied to Home Purchase Solution to do just that. Does anyone know how long it takes to get the ball rolling on such a thing? I think it's probably wishful thinking given how much time we don't have, but there's got to be a silver lining here somewhere!


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[shamous113]

from my own experience mortgage pre approval was done in a cpl of hours, after my house sold with my ex I was able to find a house and close and move in in 60 days.

 

[sunnykita]

Oh that sucks ! those rent to own agreements seem to be more trouble than they are worth for anyone I've ever talked to about them. Nothing like screwing you over with no written agreement. I'm not familiar with the program you mention, but wish you luck in the search

 

[heath]

Jeff, if you want to or thinking of buying go to a mortgage broker..if you go to banks or lenders and apply for a loan they will pull your credit everytime and it makes it look like you are trying to find either cash or a loan quick, makes them nervous...usually a broker can gets difficult deals done...I do agree, go now and get preapproved, then you know what you can afford and avoid disappointments...
have you talked with your landlord to see if he will either, sell you the house and give you some kind of credit for the rent paid or would he be willing to hold the mortgage ... its not legal but there is a thing that you can do, its called the Oklahoma deal, the price of the house is inflated but the amount paid to the vendor is a lot less, shows that you gave them your down payment...not sure if its legal any more..it did get a lot of people in financial trouble...

 

[shamous113]

Oklahoma deal, the price of the house is inflated but the amount paid to the vendor is a lot less, shows that you gave them your down payment...not sure if its legal any more..it did get a lot of people in financial trouble...

Banks don't do this any more but credit unions do a cash back mortgage that's similar so you can get your 5% down. +1 to using a broker and typically they can get a better rate then the banks will give you.

 

[Nighthawk26]

There is no way that is allowed anymore Heather. Banks will get appraisals on anything that seems even slightly outside of normal values. They have REALLY tightened up in the last 3 to 5 years.

I'm not sure if the OP is upset because of the overall situation and needing somewhere to go by the summer, but was paying a normal rent rate, OR if they were paying a bunch more with the idea of buying the home. If it's the first, then for sure that sucks, and a "dick" move for sure, but nothing to be done. IF he was taking over rent from you as a way of gaining confidence form you that you were serious about buying, that is a different yet difficult situation. One for sure I would hope there was SOME documentation on, either formal or informal.

 

[heath]

if this is your first home there are also gov grants and credits that you can apply for... talk with a mortgage broker, if credit is less than perfect they also have access to private money...

 

[SamB]

Hey Jeff
A tough situation and good of you to put yourself out there about it
I'm a mature guy and maybe I've seen a lot but sometimes in life we are "tested" and we are "forced" into a situation that makes us feel uncomfortable
You and your family are in such a position now due to no fault of your own - except to not get an agreement in writing (watch the movie Jerry McGuire if you don't believe me)
My buddy is a real estate lawyer and I can talk to him but I doubt that you've got a fall back position without a legal document
My advice at this important junction of your life is to embrace the discomfort and pain
Truly go for it
Don't allow anyone to have mastery over you
See a broker, be honest with them, lay all of your cards on his or her table and try to enjoy the moment
Brokers are like bartenders or psychiatrists (without the prescriptions) - they've seen it all and heard it all and are there to help
Seize the day man and you will never regret it
Best wishes for success
SamB

 

[jeffopentax]

Jeff, if you want to or thinking of buying go to a mortgage broker..if you go to banks or lenders and apply for a loan they will pull your credit everytime and it makes it look like you are trying to find either cash or a loan quick, makes them nervous...usually a broker can gets difficult deals done...I do agree, go now and get preapproved, then you know what you can afford and avoid disappointments...
have you talked with your landlord to see if he will either, sell you the house and give you some kind of credit for the rent paid or would he be willing to hold the mortgage ... its not legal but there is a thing that you can do, its called the Oklahoma deal, the price of the house is inflated but the amount paid to the vendor is a lot less, shows that you gave them your down payment...not sure if its legal any more..it did get a lot of people in financial trouble...

Funny you mention the possibility of him holding the mortgage, as he said that was also a possibility when we renewed the lease last year.




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[heath]

wow, but think about it, if he sells the house to you it will save him a bunch of money in real estate fees...could be a good bargaining chip..

 

[jeffopentax]

wow, but think about it, if he sells the house to you it will save him a bunch of money in real estate fees...could be a good bargaining chip..

Us buying the house is no longer an option. Not sure i would want to anymore. He's not the stand up guy we thought he was. I think i need to explain the situation a bit more. His story (not sure we're being told everything) is that he is selling it to his brother. Apparently, he drives truck, and his wife gets lonely and wants to be in the same city as some of her family. Now, maybe i'm the dick for thinking that is a lame reason to kick out a family of four who are excellent tenants, have never missed a payment, and intended to buy the house.


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[heath]

I hear what your saying, you will never change some people...

 

[jeffopentax]

My neighbour (who owns a bunch of rental properties) says we should get in touch with her broker. She seems to think she'd be able to help us. In the meantime, if anyone is bored, I'd really appreciate if someone could skim through this and let me know if something jumps out at you that suggests I shouldn't consider this route

http://www.homepurchasesolution.ca/home-ownership/


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[Jesse biocubebeginner]

I've heard these companies are vultures. After you pay a few years they reappraise and up the price. Leaving you with nothing. Better to go to a mortgage broker and buy yourself. Good luck with everything man. My family has also been there and it's tough


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[jeffopentax]

I've heard these companies are vultures. After you pay a few years they reappraise and up the price. Leaving you with nothing. Better to go to a mortgage broker and buy yourself. Good luck with everything man. My family has also been there and it's tough


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Good to know! Will definitely have to ask about that if we go that route.


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[Nighthawk26]

I can only imagine the rates a d more importantly terms and restrictions.

Do you have reason to believe you would not qualify for a mortgage? No clue on age, or if there are co signers available, etc.

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[jeffopentax]

I can only imagine the rates a d more importantly terms and restrictions.

Do you have reason to believe you would not qualify for a mortgage? No clue on age, or if there are co signers available, etc.

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Quite certain a mortgage is out of the question. My credit got shot to hell years ago (thanks OSAP!), and my wife has no credit. When we tried to finance our car, it would have cost triple what the car was worth when it was all said and done. Our options are limited!


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[Jesse biocubebeginner]

Lottomax!


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[shamous113]

Skimmed over the website, all mortgages include your CMHC insurance premium, all banks will set up a property tax account that you pay in to monthly. this bothered me a bit, if they dont think you increased the value enough or let it run down then what? seems shady.

"At the end of term, the balance due to Grand River is usually less than the cost of the home at the beginning of the program. Your purchase agreement provides the lender you choose with evidence that sufficient equity has been accumulated to advance you with the funds needed to pay off Grand River and cover closing costs."

I'd have to agree with all the people above to try a mortgage broker, a house typically gains value where as a car looses as soon as you drive it off the lot, this makes it more appealing to banks to finance a house . a lot of brokers have access to private investors too. worth a try.

 

[jeffopentax]

You're all making me put my hope into a broker, instead of rent to own. That's opposite of my thinking this morning haha What is more important in obtaining a mortgage, large downpayment or credit rating? Or are they equal?


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