Should I lease an air-condition for my home? SCAM ALERT!

By
Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642
https://activerain.com/droplet/4WRV

 

scam air condition

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. 



Posted by

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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Topic:
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Texas Harris County
Groups:
Almost Anything Goes
All Thing's Texas
Club Chaos
Diary of a Realtor
Tags:
real estate scams
ac scams
scams to the elderly

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Rainmaker
280,068
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

Holy crap!  Something sounds really illegal!  Hope an attorney can help her!

Oct 23, 2016 02:39 AM #1
Ambassador
2,844,220
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Holy moly batman, while there may be nothing illegal about her contract it is so wrong on so many levels.

I just they called it a lease and not financing because that kind of interest rate would certainly be illegal.

 

Oct 23, 2016 04:05 AM #2
Rainmaker
1,494,966
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Wow what a disaster & I'm sure this is probably one of the nicest ladies you'd ever want to meet. You'll get to the bottom of it. 

Around here if she doesn't make the payments they literally cut the thing out of the backyard.

Oct 23, 2016 04:48 AM #3
Rainmaker
1,557,915
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Well, the take-away is she contacted you for whatever reason, and you unearthed this scam.  And she sure sounds like she needs someone to protect her best interests in a real estate transaction!  Poor dear,  apparently,  she can't do simple math.

Oct 23, 2016 06:33 AM #4
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Rainmaker
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Greg Nino

Houston, Texas
Providing Real Estate Advice 7 days a week!
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