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McCourt Real Estate Blog

Would someone actually Steal a house?

August 17th, 2008 5:43 PM by Caren McCourt-Crane

We were contacted by a nice lady who wanted to sell her house, but she was worried.  She had signed an option agreement that she didn't really understand.  She said it was a two month option, and that she needed to sell soon.  She faxed me the "Option Contract" and I soon became worried too.  What she had signed was - well it looked like the bad guys were going to steal her house.

We are nowhere near the bottom of this, but I'll tell you what we know so far.

She thought she had signed a contract to give the buyer a 60 day option period to buy her house.  She thought she was to be paid $75,000 cash at the time of sale.  She thought that she didn't have to move out of the house until she had the money from the sale, and this was very important because she could not afford to move without it.  She thought that if the house didn't sell in 60 days, she was finished, and could sell the house through some other means.  WELL........

The contract that she gave me indicates that there IS a 60 day option period, with payment to her of only $10 for the ability to purchase the house at $75,000.  But the option period can be extended for an additional 60 days for an additional sum of ZERO dollars to her at the discretion of the buyer.  When the house is sold, she is not going to receive $75,000, she will get a "note" payable to her after sixty months, yes, that's 5 years.  She will not receive any payments during this five year period, nor will she earn any interest on the money she is "loaning".  ...... But wait, it gets worse..

There is an agreement toward the end of the papers that provides that she will move out of the house within 30 days after the sale.  That would be roughly 59 months BEFORE she gets a penny of her money.  And further, this document states that if she doesn't move by the 30th day after the sale, then she will be required to pay rent of $34 per day........

They are planning to steal this house from her.  Tell me what you think?

 

 

Posted in:General
Posted by Caren McCourt-Crane on August 17th, 2008 5:43 PM

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