Home Buying in Lansing>Question Details

Dawn, Other/Just Looking in Lansing, MI

$500.00 Down $400.00 a Month, NO CREDIT CHECK!!! Hummm.... I smell FISH!!! Give me your opinion on this.

Asked by Dawn, Lansing, MI Wed Apr 15, 2009

I recently corresponded via e-mail with a woman regarding a MLS listed House for $14,900.00. It was listed as with option to buy. But of course when I inquired, this house had just sold. After writing to the agent offering this service, she sent me this explanation of their program "As far as how our program works, our houses are $500 Down, $400 monthly, plus taxes and insurance. NO CREDIT CHECK. The selling prices are $46080.00 on a 30 year land contract. If you were to pay in full the amount is taken down to $20,000.00 As far as details go, I would need to know address, or which city, and state your looking. We have 15 states, and our office is in Lansing, MI", hummmm... Now let's break this down - $400 x 12 x 30 = $144,000.00!!! Just a tad bit more than the $46,080.00 price of the home, or the $20,000.00 cash payoff! Am I wrong to think this is a scam? I elected to save my money and just pay cash for a home next year. Tell me your thoughts, was I right or wrong in my thoughts?

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if it looks like a fish,and smells like a fish...it's probably FISHY!
1 vote Thank Flag Link Wed Apr 15, 2009
Don't forget about the interest. Hopefully a lender will jump in here and tell you how much you would actually be paying of you bought with a conventional mortgage over 30 years. If the house was 46k, then $144k after 30 years could be about right. Yes, probably a higher rate of interest than you could get for a mortgage, but then, someone who does not want a credit check probably will have trouble getting a mortgage any way.
0 votes Thank Flag Link Wed Apr 15, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
Sounds very creative, seller must be holding the paper until pay off. I would want to make sure that title insurence is provided up front to assure it is in fact the real owner. If it is in the MLS, the agent should be able to provide more details.
0 votes Thank Flag Link Wed Apr 15, 2009
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