The owner of the Maine home is out of state, wants to rent his property, the place until it sells.

So he can replace the home in Maine with another in an area outside Vacationland. Like a real life game of dominoes. Involving houses. Swapping one in Maine for another in some other state.

So the idea of why not rent with option to buy comes up. Sound good, some of the monthly money going toward a purchase price. Rent to own a Maine home.

And the renter can fix up the deficiencies while waiting to get up to speed to obtain a house bank loan in time. Because there are some credit issues to home house keep. To pick up, address and straighten out.

Because the owner has a Maine house mortgage that needs to be kept current.

The lender frowns on anyone doing a wrap around of the terms and conditions spelled out as the rules to abide by, a new Maine home loan is needed.

And the old house mortgage on the Maine home is not assumable these days. In fact if a transfer of title is attempted without paying off the house mortgage, all the money becomes due, escalates. There is an on demand trigger clause the seller agreed to, signed on to honor.

Those pesky lawyers at the bank think of everything. In fine print. For a pay you stay, you don’t you won’t approach to lending.

Here is what can happen while the renter improves their credit score, whittles away on the debt hurting their spending ratios to earnings. The renter spends money on fixing this broken window, painting that flaking side of the garage. Repairs the leak on the second floor where the roof flashing has issues where it butts up against the chimney. All seems good, on track.

And the monthly Maine home rent checks get religiously sent on to what the renter understands is the monthly bank payment to the owner out of state.

Who in turn cuts a check, zips it off to the mortgage holder. Until someone shows up to issue, serve the legal eviction notice. Not from the owner but the bank, lender involved that holds the mortgage on the property.

The one the seller has not been paying monthly, not passing on the monies from the renter. Even though you the renter believes he is like clockwork.

Rut rho. This is a serious problem.

Who are you the bank officials, representatives ask. And remind everyone in the room we don’t care where you go but you can not stay here.

The eviction process through the court system has been initated. And if you move out early we will give you a little financial incentive. The one called “cash for keys”. If you play ball, leave now and save the legal steps involved because the tenant in possession has rights before given the boot. There is a process that can go the easy or the hard way. Up to the tenant, time of year, other factors.

Rent with option to buy Maine home sales, it’s what you don’t know behind the scenes that makes for a very bad, poor ending.

That stinks, smarts, hurts the wallet. And the pride in ownership of all the work you did on the place that does not end up being yours.That the next guy and gal benefit from when they waltz into the public auction with a stack of cash. Or have squeaky clean credit and can secure financing that has been ellusive for you over the last year of renting. Thinking you were heading to a real estate closing in time and transfering the title into your name with a new mortgage bolted on to secure the collateral.

Unless we can pull it out of the fire, if you are bankable and up to snuff credit score and debt ratio wise, all that time, sweat, money down the drain.

And you to have a steady income source, are gainfully employed. It pays to know the score of where the Maine home owner is as far as foreclosures, liens, and if a short sale is an option. All going in so you the buyer that starts out a renter knows the odds, the pitfalls. And does not hold the wrong set of expectations.Stays just a renter without the dream of owning this particular home in Maine.

I’m Maine REALTOR Andrew Mooers, ME Broker

207.532.6573   |   Email info@mooersrealty.com   |  MOOERS REALTY 69 North St Houlton ME 04730