Foreclosure in San Jose>Question Details

Griffithsort…, Renter in San Jose, CA

Are the rent to own sites for foreclosed homes a scam? They seem to cheap to be true.

Asked by Griffithsortiz, San Jose, CA Sat Jun 1, 2013

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5
Charles has given you excellent advice, if it is to good to be true it you can bet that it is a scam.
At your service,
Allyson,
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
2 votes Thank Flag Link Sat Jun 1, 2013
Thank you for your question:

Many of the rental sites, including rent to own are scams designed to steal your money.

The best way to protect yourself is to make certain that anyone and everyone that you are working with has a valid, active Real Estate License issued by The State of California. You have the right to ask them for proof that they have a valid, active Real Estate License.

Ask everyone that you are working with for their DRE license number. That will eliminate the scammers.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
2 votes Thank Flag Link Sat Jun 1, 2013
It sounds like you are proposing that the Bank, having Foreclosed on a house, turn around and make a special deal to you, whereby they give you a Lease/Option on it.
First of all; Banks do not rent out property, much less, would they do a Lease/Option.
Secondly; if your credit is so bad that you cannot follow the conventional route, then the Bank will not give you the time of day.
1 vote Thank Flag Link Sat Jun 1, 2013
Charles and Allyson gave you spot on advice.

Rent to own is very rare in our area because it doesn't make financial sense for either party. When we are in a strong seller's market, a seller would not want to hold up their property for sale to rent it out. Many scammers prey on people who otherwise can not afford to buy and it is those individuals which have the most to lose.
Web Reference: http://www.TerriVellios.com
1 vote Thank Flag Link Sat Jun 1, 2013
I would advise against any rent to own/lease options without the advice and guidence from an expereicned RE attorney. Even then you need to be very careful as many lease/optioners can easily rip you off by taking your up front $$ and screwing with you on the terms and conditions of the agreement. If you have option $$ why not just apply it to a legitimate purchase?
0 votes Thank Flag Link Sat Jun 8, 2013
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