fishy real estate deal (agents, contract, Realtors, listing)
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I entered into contract to purchase a manufactured home in Reno, the home was supposed to be seller financed so an inspection and attorney review were not necessary to buy, however I insisted on an inspection (at my expense) and attorney review, this was met with "we usually don't do this here" by the Realtor.
Upon inspection we found the house was plumbed with polybeutalyne which was leaking, and a host of other problems
I was willing to go forward with the purchase but only after all repairs were made or at a lower purchase price. The seller refused and I walked, then the Realtor suggested I simply wait the seller out, saying he would get tired of making mortgage payments on the home as well as land lease payments, at hearing this I asked how can the seller owner carry and still have a mortgage I was told I pay the seller and he pays the bank, this sounds insane to me. I asked suppose I pay but he doesnt and the bank forecloses on him, I would not even get a notice because the home I was buying was bought with a home equity loan on the sellers primary home and mail would go there, when asked why I was not informed about this I was told this is common practice here in Reno and if this happened I could sue the seller, sure I could sue but I would never collect and would be out my down payment and payments, I still asked why wasnt I informed at the signing of contract and before I payed for an inspection, I was given the same answer. Now I know why an inspection and attorney review were met with resistance. Is this really common here in Reno?
I don't believe it's common anywhere. A mortgage has a due at sale clause and if they found out about the sale the lender could call the loan due. Some loans are assumable but I've not really seen many of those in the last 10 year.
You're right that you would be SOL if he did not pay and disappeared. The lender would evict you and sell the property. Your money would be history and as far as suing, forget it the guys would have no money.
This happened to a few "buyers" I know here in NC. They "purchased" a home from a FSBO or an investment company with supposedly owner financing. Since the buyer was not represented, they of course skipped attorney reviews, title work, inspections and appraisals.
It turned out that the real owners or the investment companies were just making payments on their mortgage and renting it out to the "new owners". The problem was that they came to me for refinances, but they were not the actual owners (or even if a deed had been recorded in their name, their were still liens on the home) so I could do very little. Most of the time it was with manufactured homes and the buyer was paying well over what the home was worth.
In the end, if mortgage payments stopped being paid the owners would lose the home and all the money they had put into it. A good reason to always seek representation from a Realtor or attorney and never take a sellers word for anything.
I was working with a "licensed" Realtor, this is why I am so put off by this, I never spoke to to the seller only the listing agent.
Report them, I am sure they are pulling the same scam with others.
As I mentioned there were investment companies AND Realtors involved in many of the ones I saw as well. I reported one company, already had >20 complaints and pending lawsuits and investiagtions with the state attorney general. Often enough the victims move on and don't want to report anyone.
Why would owner financing negate the need for a home inspection?
Fishy does not begin to describe this situation.
I hope poster "oldcapt" sees this one.
I sees it.
If as reported you are dealing with some people well pass acceptable. It is not usual to use an Attorney unless you are worried. But you ought to be here. Inspection are absolutely standard on all RE sales in NV.
This is a highly questionable scenario if it is as reported.
Fill out the paperwork and the hounds will descend upon your agents head...
Do it...we need this sort of thing weeded out...
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