One of the first Latin phrases I learned while taking my real estate licensing course almost 20 years ago in Florida was “Caveat Emptor”, which translates to, “Let the Buyer BEWARE!!!!!!”.
As they always do, the capital markets are correcting themselves despite all of the governmental intervention.
The biggest way this is happening presently is through owner finance/rent to own/lease purchase/lease-option type transactions which stabilize pricing by preventing foreclosures.
The biggest fear ANY homeowner has is losing their home.
Unfortunately, a huge catalyst for our business and a big nationwide trend is renters and/or buyers entering into rental/lease purchase/rent to own/owner finance agreements where the tenant/buyer pays timely but the owner/seller doesn’t pay the mortgage. This results in a foreclosure and tenant/buyer eviction.
Knowing this, we began instituting a clause in our contracts requiring proof that the mortgage was current prior to money exchanging hands, tenant occupancy and on a monthly basis.
This month, we saved a client from paying $3300 on a fraudulent deal. We received an executed contract from a Keller-Williams Realty Agent who was the Listing Agent in MLS of the property, the occupant of the property AND personal friend Of the seller of the property. It turns out there was collusion between the Realtor and seller and the property was $12,000 down on the mortgage and IN foreclosure. Amazingly, they were still pumping a retired couple who was 64 years old, for $3300 and would have taken it had it not been for our pre-emptive measures requiring proof of buyer protection.
Unfortunately, I get calls everyday where clients have been diligently paying on a lease purchase/rent to own/owner financing/lease option type transaction wheee they are getting evicted because the owner/seller is accepting their payments but NOT Paying the mortgage. This is a criminal as well as civil offense but it happens every day.
