Jude 2

apply for a home purchase?

My brother called me a few minutes ago to tell me about a house that he is interested in renting to own. He said the application asks all the typical questions that one would expect to find on such an app. but it went further he thought, it asked for his banking information, more specifically his account number. Is that normal? Should he leave that part "n/a" or should he not be worried? I believe he said it was a Company and not an individual but I can't remember if he said Mortgage Co. or not. Any help? Thanks!

Yes along with blood samples and your first born.

I'm not sure on the rent-to-own deals. Are they going to pull a credit report? If it was a real mortgage type situation, then it would be normal. They know everything, and require bank statements and check stubs. When they pull a credit report, they get all that info anyways.

I'm not a pro, though, but just went through the process a year ago...

Not sure, they may be checking how much he has in his account. They do check this when you are buying a home.

Brian, your brother should run away from this deal, and it has nothing to do with giving up his bank account number

In my area, we had a corporation develop a neighborhood and set up lease/purchase (or rent to own as you call it) for all the homes. For a couple of years, everything was great. The people who were lease purchasing their homes faithfully made their payments and thought they were well on their way to home ownership. One problem though. The corporation had financed the purchase of the land and the construction of the homes. The corporation stopped paying their mortgage payments and the bank forclosed on all the homes. Even though the lessees had paid every payment every month to the corporation, they lost their homes and any supposed equity that they were supposed to have had. They had nothing to show for all their money. And guess what? They had no legal recourse due to the terms of the lease/purchase.

DaJudge wrote:Brian, your brother should run away from this deal, and it has nothing to do with giving up his bank account number

In my area, we had a corporation develop a neighborhood and set up lease/purchase (or rent to own as you call it) for all the homes. For a couple of years, everything was great. The people who were lease purchasing their homes faithfully made their payments and thought they were well on their way to home ownership. One problem though. The corporation had financed the purchase of the land and the construction of the homes. The corporation stopped paying their mortgage payments and the bank forclosed on all the homes. Even though the lessees had paid every payment every month to the corporation, they lost their homes and any supposed equity that they were supposed to have had. They had nothing to show for all their money. And guess what? They had no legal recourse due to the terms of the lease/purchase.

I have seen this as well. This is indeed wisdom.

pa