Avoid Rent to Own Scams and Win Big!
Businesses have changed the way they function in several ways with the current struggling economy.
The sector of real estate is not excluded.
Seeing that it is becoming more difficult for people to apply for mortgages due to a poor credit score, lease options and lease purchases are becoming the new way in which one can acquire a brand new home. However, because these transactions are not well monitored, there are high chances of fraud and scams taking place as well.
Caution is important when you lease option or rent to own a home. If not cautious, the whole process could be a scam in order to take your money.
Millions of home owners are discovering it almost impossible to make their mortgage and bill payments. Everyone is interested in cutting corners and saving on their expenses. These economic times, have prompted many to do just about anything to keep their finances afloat.
An example to this happened to my parents just a few months ago. They had signed a contract on their dream home and were anxiously awaiting their move in date. A realtor lived in the home and was friends with the owner, who lived out of state.
Before the move in date, we requested verification that the mortgage was current as required by the contract. At this time, we discovered that the mortgage was behind almost $16,000 and that the home was in foreclosure. It was eye opening to discover that the owner and realtor were cohorts to attempt to take my parents money. They were planning to collect my parents money, the option fee and rent payments yet still allow the house to foreclose.
The bottom line is that if you renting out a home to own it in the future, you need to be very careful in order to make sure you are not being scammed. Always make sure that the owner is not behind on the mortgage.
Ensure that you are dealing directly with the owner of a company that is working on behalf of the true property owner or the property owner himself.
Recently scams have come to light that have entailed people advertising homes by way of classified ads, signage in the yards or even the most popular scam on Craigslist. These people have no relational ties to the house or legal right.
The craigslist scam is becoming more and more common. What happens here is that someone overseas copies the photograph of a home that is listed on the market. They then advertise the property at an extremely low rate to attract the attention of potential buyers. Usually they will use family and religion to try to build a relationship. They will say things like they are overseas on missionary work and all that they want is for someone to take good care of the home. Then they will ask you to send them money directly, without you ever seeing the inside of the home! If this happens to you, start running!
Although Renting to Own or Lease Optioning a home is a great solution if you can not qualify for a mortgage, you need to be careful! Making sure you are working with the owner or their representative and that the mortgage is current are great steps to protect yourself!
The sector of real estate is not excluded.
Seeing that it is becoming more difficult for people to apply for mortgages due to a poor credit score, lease options and lease purchases are becoming the new way in which one can acquire a brand new home. However, because these transactions are not well monitored, there are high chances of fraud and scams taking place as well.
Caution is important when you lease option or rent to own a home. If not cautious, the whole process could be a scam in order to take your money.
Millions of home owners are discovering it almost impossible to make their mortgage and bill payments. Everyone is interested in cutting corners and saving on their expenses. These economic times, have prompted many to do just about anything to keep their finances afloat.
An example to this happened to my parents just a few months ago. They had signed a contract on their dream home and were anxiously awaiting their move in date. A realtor lived in the home and was friends with the owner, who lived out of state.
Before the move in date, we requested verification that the mortgage was current as required by the contract. At this time, we discovered that the mortgage was behind almost $16,000 and that the home was in foreclosure. It was eye opening to discover that the owner and realtor were cohorts to attempt to take my parents money. They were planning to collect my parents money, the option fee and rent payments yet still allow the house to foreclose.
The bottom line is that if you renting out a home to own it in the future, you need to be very careful in order to make sure you are not being scammed. Always make sure that the owner is not behind on the mortgage.
Ensure that you are dealing directly with the owner of a company that is working on behalf of the true property owner or the property owner himself.
Recently scams have come to light that have entailed people advertising homes by way of classified ads, signage in the yards or even the most popular scam on Craigslist. These people have no relational ties to the house or legal right.
The craigslist scam is becoming more and more common. What happens here is that someone overseas copies the photograph of a home that is listed on the market. They then advertise the property at an extremely low rate to attract the attention of potential buyers. Usually they will use family and religion to try to build a relationship. They will say things like they are overseas on missionary work and all that they want is for someone to take good care of the home. Then they will ask you to send them money directly, without you ever seeing the inside of the home! If this happens to you, start running!
Although Renting to Own or Lease Optioning a home is a great solution if you can not qualify for a mortgage, you need to be careful! Making sure you are working with the owner or their representative and that the mortgage is current are great steps to protect yourself!
About the Author:
Wendy Polisi is the Vice President of Finance the Dream which offers Lease Purchase and Rent to Own Homes through out America. Their program is designed to help people with less than perfect credit achieve the goal of owning a home.. To learn more about improving credit please visit her at liferebooted.org, the blog that tells you everything you need to know about bouncing back after financial setback.