Lexie wrote: All of this information is good to know. Any time you rent it's always good to have renters insurance on personal property. From personal experience, the mortgage holder on a rent to own billed us for insurance on the property. It's like paying insurance twice but it's best to be covered.

So for the rent to own scenario, you had to pay the insurance on the property?

All of this information is good to know. Any time you rent it's always good to have renters insurance on personal property. From personal experience, the mortgage holder on a rent to own billed us for insurance on the property. It's like paying insurance twice but it's best to be covered.

FrankN wrote: I have never heard of that either, but I bet you are right! The bank doesn't want you to drive away and hide from the bank!

That makes sense. I was originally thinking about a tornado, but your scenario is more plausible. I didn't realize banks offered financing for rent to own homes. Just always thought it was done privately, person to person, from the owner to renter/buyer.

Thanks Wanderer for all the information about insurance. I bet you're spot on.

I have never heard of that either, but I bet you are right! The bank doesn't want you to drive away and hide from the bank!

I heard that if you want to finance a mobile home, you must put it on a foundation where it can't be moved. I don't really understand why, but that way you can't just run off with the collateral, I guess. What other reason could there be?

This is a grey area, to be sure. Keep in mind also that mobile homes are treated differently than regular homes. Modified or not, I don't think there is anything you can do to a mobile home that changes its legal status to a house.

Good point and I am not able to answer that. A Contract for Deed can be written such that I am thinking the person paying the Contract for Deed could claim some ownership rights ... this is where an insurance agent and/or attorney would need to look at how the "insurable interest" is established.

Great information, Wanderer. I can see where you would need renter's insurance and liability for a situation like that. I just have one question. What is the difference in a contract for purchase and a mortgage company as the lien holder on a note? I mean you still have to provide insurance even though you don't totally own the house. Seems like there should be some way around all that. Just thinking...

In reading this thread and pulling from my memory if the fee title of the property ownership is in someone else's name you may NOT be able to insure the property since officially you do not have the insurable interest (you do not have the legal ownership of the property). You would need to obtain Renter's Insurance for contents and liability if someone has an accident. Appears to be very similar to a Contract for Deed where you pay so much over time and at the end of the contract the actual fee title owner would transfer the property into your name (until then you likely have no real status on the property ownership and cannot obtain the insurable interest). Where all this is coming from is that Insurance Companies generally only can provide insurance to the individual or business that has the legal ownership rights on a property not the lease holder, renter or contract for deed purchaser. Note, this information is provided only as a guide and like everything else in life is subject to exceptions and I do NOT practice law. An insurance agent or lawyer would provide the specific requirements when needed!

I think that it should all be covered in the real estate contract you will sign. There has to be some give and take there I would think, especially if you are renting to own a house that was sitting for a long time. They have been having to pay taxes, insurance etc. anyway so they should be willing to cut their losses a little one would hope.

Are you supposed to get a better rate if you go this route? Who ends up being responsible for the home insurance and yearly property taxes? It seems risky if you're the owner.

Joker wrote: Thanks for the advice. The property was listed with a real estate agent but never sold. It is a modified mobile home (permanently affixed) and the price has gone down twice. We made the agent an offer to give to the owners, but they want $20K down. Nobody would pay that down on a mobile home not even a new one. Heck if I had that kind of money, I would put it down on a house.

Agreed, that makes no sense, I am sure that was a very large % of the total cost, likely more than 30%. Good call on turning that down.

Thanks for your take on it. I thought that too but my daughter really wanted that house for the upgrades them made in the yard, car port, etc. Sometimes it just isn't worth your time and effort.

You're right Joker. Something just doesn't sound right. Go to another real estate agent and ask them to get the particulars on this house. There's a story there somewhere. It may be something you don't want to get involved in.

Thanks for the advice. The property was listed with a real estate agent but never sold. It is a modified mobile home (permanently affixed) and the price has gone down twice. We made the agent an offer to give to the owners, but they want $20K down. Nobody would pay that down on a mobile home not even a new one. Heck if I had that kind of money, I would put it down on a house.