"Let the Buyer Beware"

Caveat emptor is Latin for "Let the buyer beware".

There a lot of "for sale" ads out there for lists that guarantee to put you with sellers that want to sell you their home on a rent to own payment plan. You will find them on free posting sites for Real Estate, Homes for sale, Rent to own and the like. They want your Credit Card information. They will charge you a one time fee, then you get access to all this information. They give you a 30-60-90 day trial, and if you change your mind they will refund your Money, so they say. In my experience, there is always some little catch (you know, "the fine print") for them to keep your money, relying on the idea that you will get tired of trying and just give up.

This kind of advertising may not be technically illegal, but it is not a great thing to do in this financially challenged world that we now live in. These opportunists, several years ago, used to post ads in "throw away" papers selling lists of homes for rent. Now, they post ads online on sites like "Craigslist". They go through the local paper or online and look at the homes for rent, or in this case, for sale. They tell the owner they will put the owner's property for sale, lease, or rent-to-own on their listing service for 30 days at no charge. The owner thinks,"Why not, it's free." Now the opportunists have a list of several homes with pictures and names and numbers that they can use for the bait in their ads. Then, after the 30 days, they say to the owner, if he wants to keep the ad there it will cost $100 (or whatever) for another 90 days. Many times the owner will bite, because these "free" ads have been getting responses.

The opportunists run ads that they have owners in several states, cities, whatever that will sell "nothing down", "rent to own", or "will sell on a kiss and promise". They sell you the lists for a fee. Another common list these opportunists will try to sell you is the "foreclosure list". Now, the opportunist is making money on both ends, with information the owner and the potential buyer could have found on their own to begin with.

It is human nature to try to do something the easiest way possible. These opportunists are banking on some people being lazy, trying to get something for nothing, and/or wanting to take the easiest route possible to the goal, whether it is selling or buying.

There is another way. You can do your own homework. To find lists of houses in foreclosures, go down to your local court house, to look for the following:

• notices of default
• pre-sales auctions
• Sheriffs sales, ect.
• employees at the Court House, and/or Hall of Records or records department that will just love to inform you of all the ins-and-outs on how to research the information you desire.
  

If you see a house in a neighborhood that looks unkempt and abandoned, chances are it is in foreclosure. Obtain the street address of this property, and go to your local Court House to look it up. You will find all the information you need if you just ask at the Court House what you want to know.

Another way to do your own homework to find homes for sale: put in a small ad stating you would like to do a lease-option (lease the property with an option to buy at a later date) for the right property. And check out whatever the seller tells you. Always let the papers do the talking. Trust the owner until you find out different. But by all means, find out before anything is signed and before any MONEY is exchanged. Do your homework, and protect yourself:

• Go to a Title Company and have them do a Preliminary Title Report.
• Ask to see a statement on the seller's payment history. If it is a straight deal, and the owner wants to sell or lease with an option, he will not have any issues making sure that you are assured that the property title is not in jeopardy.
• The seller needs to be agreeable to informing the Lien Holder that he has entered into an agreement that has an option for you to purchase the property. That way, the Lien Holder is on notice that you are leasing the property and have an option.
• The seller needs to find out if he has an "acceleration clause" in his mortgage if he leases the property. (This means the entire balance on the mortgage is due and payable because he has transferred the property by way of a lease with an option.) Depending on the wording of the mortgage, some banks will consider this transferring the property, a contract for sale, and therefore triggers the "acceleration clause."
• Have an independent third party collection account, that will receive and disperse all funds. One of these companies is "Note World", out of California. This way you are assured the payments you are making actually go to paying for the property and don't "get lost" in someone's bank account. The owner and you will also have a record of what has been paid and to whom.
• If you are sure you are getting a good deal, but you are not sure about the papers you are signing, pay an attorney to review the documents for you to make sure your interests are being protected.
  

Always remember this adage: "If it sounds too good to be true, it probably is...."(c-mon you know the rest of the saying).