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Consumer group: Defect taxonomy issues apply to reverse mortgages

North suburban Chicago man s COVID mortgage forbearance nightmare

Google Maps Like millions of homeowners, Gregg Pupecki of Beach Park accepted mortgage forbearance an interest-free pause in his payments during the coronavirus pandemic. A first-time homeowner, Pupecki loves his two-story house, which he bought in 2012. So he paid attention when he got a notice from his loan servicer in February demanding an immediate payment of $12,475 “to bring your loan current.” “Failure … may result in fees and the loss of your home due to foreclosure,” the document read. His original lender, Chase Bank, offered the forbearance essentially a pause in having to make the payments on his 30-year mortgage without racking up extra interest or hurting his credit on his FHA-backed loan.

How does rent-to-own work?

How does rent-to-own work? © Weekend Images Inc./Getty Images Couple looking at a rent-to-own contract As home prices continue to rise, those with their heart set on homeownership may be starting to explore less-traditional options to climb onto the property ladder. One such option is a rent-to-own agreement, a method of buying a house by renting it first. Here s what you need to know. What are rent-to-own homes? How to find rent-to-own homes Rent-to-own tips What are rent-to-own homes? A rent-to-own home is one that allows for a tenant to rent the property, but also gives the tenant the option to buy it before the lease expires. Through rent-to-own, tenants can effectively test-drive a home, living in it for a period of time before they choose to buy it, while the owner of the home can use the purchase option to lock in a sale price, and also find a higher-quality tenant.

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