Watching the news, I saw a story of a family being evicted. They was
renting it seems, from a person who was lease/optioning the property
from the owner. Not knowing how the Owner and Leasor have their
contract set up. But knowing the standard agreement is for the leasor
to be responsible for the property and payments, I see where a less
moral people could do great damage to that side of our business
An owner in a distressed property may accept the deposit from a person
who never intend to make the mortgage payment.
This person then receives a larger deposit from a sub-leasor in the
form of 1st and last rents and security deposit.
They may even collect a few months rents, before the owner becomes
aware they are still losing that house, and ruining their credit.
With the New Bill coming to vote in Congress, actions like this are
not reflecting well for Lease/Options future.
And that`s a shame. For this is a powerful tool for any R.E. Investor
to have in their business toolbox.
I would really like some feedback on this.