Rent-to-Own Homes Scheme

 

Rent-To-Buy Scam: How It Works

(with video below) There have been a plethora of home buying scams exposed by authorities and our platform in the last few years. Unfortunately, it doesn't seem the trend is stopping any time soon.

Although it may sound like a good idea, be aware of the Rent-To-Own Homes scheme (aka Rent-to-Buy scam) that is going around the real estate industry. Under the actual program, buyers hand over an upfront deposit of $10,000- $15,000 and then pay rent, with an additional fee of a few hundred dollars per week.

---

Scam Detectors Most Trusted Websites in Online Security

1. Guard.io (100): Surf the web safely. Clean up your browser, remove maliscious extensions and check for privacy violations.
2. Incogni.com (100): Delete your personal data from the internet and protect against scams and identity theft.
3. ExpressVPN (100) Stay secure and anonymous online - Best VPN Out There
4. IPVansish (100) Fast VPN to stay safe and secure online with multiple discount plans.

---

Buyers are locked into a contract for a few years and are promised that at the end of it, the deposit and additional fees will be taken off the price of the home which they will be purchasing. How does the scam work?

Watch the video below to see in action the Rent To Own Homes scam, exposed:

The "sellers" do not hold real estate licences and the money paid by the buyers is not being directed into a trust account. Besides, there is no guarantee the buyer could obtain a home loan at the end of the contract period.

Both parties agree on the price of the home at the start of the contract. During the contract, the house cannot be sold nor the assets liquidated. Buyers who can't get financing to buy the property at the end of the period lose all the money that was initially going towards the purchase.

 

Rent-To-Own Scheme: How To Avoid

Don't get involved in such a deal unless you are absolutely sure the business is legitimate. If you are looking for rent to own companies, ask them for references, talk to owners who bought their houses already.

You can't afford not to do an extensive research on these deals. Just because the company owns nice offices and websites doesn't mean they are legal.

When looking for houses for rent with option to buy, ask for help only reputable specialists in the industry and avoid real estate fraud.

 

Rent-To-Own Scheme: How To Report:

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:

Report To The FTC Here

How To Protect Yourself More:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.

 

Related Articles and Pages:

Full List of Real Estate Tips and Scam

Change My Address/Free Change of Address Scam

Real Estate Leads/ Mortgage Lead Generation Scam

Dual Flush Toilet/ Low Flow Toilet Rebate Scam

Mortgage Modification

How To Stop Foreclosure Scam

Solar Panels For Your Home Scam

Water Heater Repair Emergency Plumbing Service

Fake Landlord Renting Property

Cheap Home Security Systems Scam