This morning I spoke to an older woman (74) who is ready to sell her home so she can move to a nearby retirement community. There's just one problem. She's involved in a scam that will very likely prevent it.
2 years ago she signed a contract on a 10 year lease...for an air-condition. A brand new unit (if she bought it) costs between 3-5k. Unfortunately, she signed a binding agreement at $220.00 a month for 120 months. She can terminate the lease at anytime for $7,500.00. Over 10 years she will have paid $26,400.00.
I am still learning more about the situation and have additional questions...
1. What happens at the end of the ten year lease? Does she get to keep the unit?
2. Considering the unit is "in her backyard" what happens if she fails to make payments?
No home buyer would assume this ridiculous lease and even if they did, the lender would never permit this added financially liability to the loan.