Avoid the RENT TO OWN real estate scam! Be poignant!

Submitted by wealth2366 from AK - 06/20/2009 - 4:21pm

 
Many people are losing their hard earned money by dealing with crooked investors, and realtor' who could care less about their situation. They are getting themselves involved with RENT TO OWN SCAMS!
 
The scam works like this, an “investor” finds a homeowner in trouble with their mortgage, they coax the owner into signing over the deed to their home in exchange for working out a short sale with bank and helping the owner avoid foreclosure, or the “investor” will say that they will make up the back payments, once the owner gives them title to the property. Once the “investor” has title to the property, they will go in and paint the property and find someone who want to rent the home for 2 years and buy at the end the 2 year period.
 
The person who will be renting is making one huge mistake, and that is they have not checked the title! Most of the time the “investor” will want the tenant-buyer to put up a 3-5% non-refundable deposit when the contract is signed. The tenant-buyer does not realize that the property is in foreclosure, and that the bank has started the foreclosure proceedings. After a few months of living in their property, the tenant-buyer receives a knock on the door from the sheriffs department alerting them that they have days to move out. The “investor” gets a few grand in his pocket, or more depending on the agreement. The original owner loses their property to foreclosure because they signed over the deed, not the mortgage, and the tenant buyer is forced to either move out or be evicted by the bank, or by whoever buys the property at auction.
 
This could have been avoided if the tenant-buyer, had done one very crucial thing, CHECK THE DARN TITLE! Never give one read cent if there are any lis pendens on the title, or is you see a notice of default recorded by the bank, or if there is judgement on title. Go down to your recorders office with the property index number or parcel number and see what is recorded on title. Until then don't give anything to anybody. If you find something questionable on title, present it to the investor who you are supposed to be working with and ask if it has been taken care of. If they say it has been taken care of, DEMAND PROOF! PERIOD. That's right, you deserve proof of conveyable title. After all, you will be eventually buying the property, right?
 
 

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