You move into a rent to own home, pay an option fee of 3%, and make payments for about 6 months.
Then, out of nowhere, you receive a letter in the mail stating that the homeowner is over 7 months behind on the mortgage and the home is being foreclosed on!
You are furious and can’t figure out what the seller did with the option fee and rental payments for the last 7 months.
If you end up getting to the point where the mortgage payments are 7+ months behind, your chances of successfully purchasing the home are VERY slim!
How do I know if the mortgage is current?
So, how do you know if the mortgage is current when you first move forward with the house?
Unless you request proof, you won’t know for sure.
It is very easy for a homeowner to contact their lender to request a statement showing the home mortgage is current and not in default.
Request that a statement like this is provided to you BEFORE you move forward with the rent to own agreement.