I think I'm following you Joi. An investor bailed you out of a difficult financial situation and promised to let you stay in your home and agreed to sell it back to you when your situation changed or on a specific date. You thought some of your equity could be saved-Right?? The investor probably gambled that your financial situation wouldn't change enough to allow you to do this so you'll end up having to move out so the home can be sold and the investor can get their (and your) money out. There is nothing illegal about this if you were fully informed of all the risks and understood what you were getting into. I like the advice the previous agent gave you about seeing an attorney to review your paperwork and situation. Call your lender also. Generally, the investor promises to make payments on the loan you had during the rental period. If this was a scam, and you didn't have a lot of equity, you'll find that the investor has been collecting rent and not making payments. In any case, you're most likely going to have to move out. The type of investor you're dealing with probably doesn't want to own a bunch of rentals. They want to get their money out and repeat the process. A new law to protect "distressed homeowners" hits the books on June 12th. Since your contract was already in place I don't know if it will help you.

Tue May 27 2008, 14:39

Lease buy-backs used to be legitimate. There aren't many legitimate ones around today. Hopefully, maybe, yours is one.

Pursue this on two fronts. First, take all your paperwork to a good real estate lawyer. First, there may be some provision in there for a situation like yours. Second, he may be able to "sniff out" clues as to whether you were scammed or not. For example, legitimate sale lease-backs typically involved a modest increase in the purchase price, along with a lease payment closer to the rental amount on the property than the PITI on the property.

If there's a possibility that it's a scam, your lawyer may suggest you contact your state's Attorney General.

Now, it's possible that the option includes provisions for extension. Even if it doesn't, that's the most likely course of action for you to pursue. You (or your lawyer) say to the owners: "I know my lease option is up in June. However, due to my financial circumstances I would like the option period extended for an additional 24 months." See what the response is.

The response may involve a shorter extension period. It may involve a higher purchase price for your house than is currently provided for. It may involve higher monthly payments. In a legitimate transaction, all of these would be reasonable for the owner to suggest. However, let the other party offer the first numbers. Then--whatever is offered--negotiate back.

But first, take your option (and lease) to a lawyer. There may be some provisions in there already addressing a possible extension, or how the transaction will be handled if you're financially unable to purchase.

Hope that helps.

Tue May 27 2008, 10:57

I need more information to answer your question. Did you sell your home that you owned to an investment company or person and they are leasing it to you with an option to purchase the home back from them?

Tue May 27 2008, 10:15

Joi,
It sounds like a very difficult situation you're in. Unfortunately, you sound like you're caught in the midst of an investment scheme that does lease/buyback scenarios, betting the original owner won't be able to keep the terms of the contract, and they'll take ownership of the property.

You should talk to your realtor about what steps you can take at this juncture to regain ownership of your home.

Mon May 26 2008, 22:31

Joi - I can't understand your question. Please rephrase so it makes sense.

Mon May 26 2008, 21:54