RICHMOND, Ind.-Perfect Circle CU is piloting a different method of disposing of the homes it obtains in foreclosure, by fixing them up, furnishing them and making them available in a rent-to-own sale.
Under the plan, rent on the homes will be $350 per month for two years, after which the $350 becomes a monthly mortgage payment. The rent payments will go toward the mortgage.
PCCU is calling the mortgages "Lend Right" loans, or "story" loans, because they are based on the applicant's story; members who have good explanations for the problems on their credit and the wherewithal to move forward are considered to be the best candidates.
As part of a pilot, the credit union spent $6,000 to renovate an REO property that was put on display during an open house. Most of the furniture was bought on Craig's List and at garage sales. PCCU employees did personal renovations on furniture and chairs after learning how by watching a YouTube video.
Potential buyers are being asked to join the credit union, which is open to anyone who lives or works in Wayne or Henry counties; fill out a loan application; participate in a budgeting course, and answer five questions in a video interview. Several judges will choose from the applicants the recipient of the house and that recipient will be announced in late February.
